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Forums » Money » Budget & Savings » Is there really a Grant to help with a down payment on buying or building a home???
Is there really a Grant to help with a down payment on buying or building a home???
posted at December 18, 2011 6:47 PM EST
Re: Is there really a Grant to help with a down payment on buying or building a home???
posted at December 19, 2011 9:30 AM EST
First: November 27, 2011
Last: December 5, 2013
In Response to Is there really a Grant to help with a down payment on buying or building a home???:
I have wanted to build a small home on some property i have been looking at for months now, a friend of mine had mentioned that there/is a grant that can help...Is there anyone out there that know how to go about this correctly???
Posted by truckhergirl
With all the vacant homes at bargain basement prices available on the market, owned by investors, banks and our government, then, NO there are not grants for building a home - not anything legit..
If you have fair credit (at least 650), an appropriate & stable income, a 3.5% downpayment, then you may quailfy for FHA financing on a PURCHASED home. If you are a veteran, there is the VA program of home buying or the USDA program. Various municipalities may have other special programs to help you buy an available home especially in high forclosure areas.
It use to be that you could get a construction loan if you owned the land outright but again, times have changed with all the vacant properties on the market and tighter lending requirements.
You should get the book "Homebuying for Dummies" - it outlines the process and learning about it will help you to not get in over your head. If you don't pay at least 20% down, many lenders (including government backed lenders, will make you pay PMI (private mortgage insurance) on a monthly basis and that adds more to your monthly payment.