What are First Time Home Buyer Grants?

When you are getting ready to buy a home of your own, it only makes sense that you would look into ways to reduce your overall costs. In addition to looking into loan programs that will allow you to purchase a home with little or no down payments, you are going to find that there are other options available. First time home buyer grants are one of these options.

For those who are looking to purchase a home in a more traditional way – going to a local bank and applying for a mortgage – in most cases, it will be necessary to make a down payment on the home that you purchase. Of course, not everyone who needs to make a down payment on a home has the money saved already; that's where first time home buyer grants come in.

With first time home buyer grants, those who are purchasing a home for the first time can apply for government grants that can be used as down payment assistance. Those who are looking for down payment assistance with first time home buyer grants will find that there are no required contributions that they must make nor are there going to be any conditions placed on the person who is selling the home.

Regardless of where you live and where you are planning on buying a home, you are going to need to meet the single requirement for first time home buyer grants: your income must meet the stated minimum – a number that will vary based on the state that you live in, the median income for the area in which you will be buying a home and the number of dependents that you have.

Ultimately, what you are going to find is that first time home buyer grants are tailored to each area, allowing applicants to receive a fair amount of assistance. The money that is provided in first time home buyer grants, in many cases, is provided as a second mortgage on the home – though recipients will not be making a monthly payment and interest is neither charged nor accrued; this second mortgage then stays in place until it is either forgiven by the government (in effect, written off) or until the home is sold (in which case you will need to repay the amount).

For those who want to take advantage of first time home buyer grants, it's important to be sure that they meet the criteria – this typically means making the median income requirements, qualifying for a mortgage and not having owned a home in the past (or for at least three years). Though there are situations in which you can be disqualified from receiving first time home buyer grants (tax liens against you, a previous default on a government loan, unpaid child support, a prior foreclosure, having had a bankruptcy discharge within 2 years of applying), the reality is that, for many people first time home buyer grants will allow you to receive, in effect, free money toward the purchase of a home of your own.