Everyone has heard about so called "free government housing grants." Have you ever wondered if they really even exist? And, if they do exist, are they really free? The not so simple, but honest, answer is: yes and no.
Yes, several government programs do exist for home improvements, renovations, housing, down payment assistance, and rental assistance. These programs span across different citizen categories. HUD, the department of Housing and Urban Development, is the federal government agency that offers financial housing assistance to qualifying applicants.
To the second point, are these programs really "free", or is there a catch? Well, not all the time. Every government program has different eligibility requirements. Some housing programs provide direct cash assistance, while others give help with indirect assistance.
In short, indirect assistance are programs subsidized loans for a mortgage. Say you would like to get a loan, but banks will not loan you the money because you do not have the necessary funds for a down payment. In this type of case HUD could subsidize your mortgage insurance. This would essentially insure your mortgage. So even though there are no direct cash payments to you as the buyer, it will enable you to secure a home loan.
Other grants for housing will subsidize a loan or mortgage to improve a property. Home grants can offer greatly reduced interest rates on renovations. So, instead of paying 7%, the government could shave .50% of this rate. This would leave the buyer with a 6.5% interest rate. In this instance, once again the government is not directly issuing cash to the buyer. But, there are direct cash grants that can be given for home improvements.
Research your eligibility by contacting your local HUD office, in addition to your local housing authorities. Often local and state authorities offer grants in addition to federal grants.
Time is of the essence when seeking grant assistance. The sooner you inquire for assistance, the sooner you can move forward with your home ownership or improvement goals. If you need outside help with obtaining grants there are many companies that can assist you. Though challenging, in the end, pursuing government grant assistance can ease the stress of home ownership.
At the Chernov Team we understand that knowledge is power, especially when it relates to getting adequate funding for your home. Whoever comes to the table most prepared leaves the table with the most, and the Chernov Team always leaves the table with the most.