Taking the Right Steps to Get a Home Owner Grant
The housing market has been on fire for the last year, which has led many to believe they could never afford to buy a house of their own. What many don't realize is if they're a first-time homebuyer: this may be the perfect time for them to leap.
If you're weighing the options, a homeowner grant could be what makes the difference. These are how to get one of these grants and what it means for you.
Be A First-Time Home Buyer
One of the most important things for many home buyer grants is that you're a first-time homebuyer. Some programs have different meanings for what defines a first-time homebuyer. Still, generally, it's anyone who hasn't been part of a transaction that resulted in the purchase and ownership of a property, including putting their name on the lease.
If you've already purchased a home before, there may still be some options for you, but it depends on the area and what you're looking for.
Take An Educational Course for Home Buyers
All homeowner grants require some sort of course for home buyers. These courses help you get to know the local laws, recognize information that you'll need to know while owning a home, and ensure you're aware of your rights so that you won't be able to claim you weren't informed.
These courses are generally no longer than three to ten hours. Some grants require that, along with this, you submit ten to twenty hours of community service to show that you'll be able to give back to the area you're buying in. This is controversial, though, and not common practice in every district.
Meet The Income Requirements
The income requirements for most first-time homebuyer grants are based on your income compared to the housing market you're in. For many areas, it's as low as $45,000 a year, while for others, it's closer to $60,000. Get to know your area, consider all of your sources of income, and consider whether there's any other way you can boost your income to fit within the requirements.
Reach the Purchase Price Requirements
Most grants require that you don't buy a house at over 95% of the area's median home purchase price. This income requirement ensures that those who need to get what they deserve and nobody's abusing the system by buying a multi-million dollar property they can't afford.
Purchase Within The Approved Area
The approved area for most of these grants is within a specific city's limits or within an area of the city that they have marked off for these particular grants. Generally, it's confined to particular zip codes, so you'll have to research the grants to ensure that they're in areas where you'll want to buy a home.
Buying a house is one of the most exciting things you can do! Although it's unfortunately so expensive, it's not an impossible feat. A little training, some understanding, and an applicable income can make you the perfect person for a grant.