Can You Really Get A Federal Grant As A First Home Buyer?

Written by Posted On Sunday, 01 July 2018 12:00

Prices of home has been kissing the sky and this seems to be a sticky trend at the moment. Buying your first house can be so much stress and seeking for help me just be the perfect way to go. The search term “First Time Home Buyer grants” has become a common search today. According to the leading home buyer in Lubbock in There is a growing number of ads on the internet as well on this topic with so many of them promising heaven and earth. I think there is a serious need for a review of all this grants for first time home buyers.

The Good The Bad and The Ugly

There are actually none. A deep research chasing down this term in question led us no where and we found our that there are no federal grants that can be of help with down payments or cost arising from closing. The good news however is that there some ways through which you can get help from the federal government or other agencies that can help you afford a home. You will be surprised that state and local governments offer more schemes that can accommodate this type of needs.

MCC Can Help Make A Difference

Also known as Mortgage Credit Certificate Program, MCC is a program created to help you receive a tax credit of 35% of the total annual interest you must have paid. But, the rest of the interest is still deductible.

Exploring the MCC option can help make a difference. A deduction means the government is giving you back some part of your interest calculated using your highest tax rate, while a credit means you will receive all- 100%. If your annual interest is $20,000 and your tax bracket is 22%. By the end of 12 months, your tax deduction will be $4,400.

“If you use MCC, you have the first 35% of your interest cost refunded and the leftover deductible. From this calculation, your tax credit is $3500 and your deduction is 22% of the remaining $6,500, or another $1,430, for a total benefit of $4,390.” Says the head of operations, HomebuyerNH.com

This program is done locally and it has some income limitations and other conditions, so it has to be available in your county for you to be a beneficiary. You can Google “MCC Certificate Program (Your County)” to locate your own local agency.

Government Home Loans

Unlike first time homebuyers, VA, FHA and USDA loans offer low or no-down payment options with no or low mortgage insurance, and lower interest rates than conventional loans. By insuring lenders against losses, the government (via HUD) encourages lenders to make loans at favorable rates and terms.

You can be aggressive in your search for the best credit solution. You need to understand that almost every lender can give you these loans, but you need to keep searching.

Are You A Good Neighbour?

You may have steady income and a great asset to any community if you are a teacher, law enforcement officer or a fire fighter. You are certainly one of the types of people every community wants around the neighborhood. A great program you can explore is HUD’s Good Neighbor Next Door program which sells discounted home in some specific areas. The discount can be as generous as 50% off the regular market price!

You certainly need to make some commitments as well. You must sign a note for the amount of the discount and commit to live in the house for a minimum of 36 months. You will never have to pay interest or make payments and the note will be forgiven at the end of the three years.

This article is written by Oke Oladimeji Amos, Owner of Homebuyersnh.com

 

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