5 Best Grant Programs for Black First Time Home Buyers (Application Process Included)

Yes. Grant programs are available for black first-time home buyers in the United States of America. A first-time home buyer grant is a grant designed for the purpose of creating more homeowners in the state. The government of the United States award these grants on the federal, state, and local level. The housing foundations and charitable organizations also give grants to first-time home buyers in the United State. First-time home buyers who don’t have money for a down payment can make use of housing grants, forgivable mortgages, and down payment assistance to buy a home. Some first-time home buyers can apply for 100 percent mortgages to own their homes in the United States. They can also apply for USDA and VA loans.

Grant Programs Available for Black First-Time Home Buyers

1. National Homebuyers Fund

The National Homebuyers Fund is a non-profit public benefit corporation. It sponsors both those who are buying homes for the first time and those who are known as repeat home buyers. The grant is usually about 5 percent of the purchase price. As a first-time buyer, you can use the grant program with a conventional, FHA, VA, or USDA loan, and forgives the loan five years after closing. Note that renters cannot apply directly for the National Homebuyers Fund grant, you can only apply through your mortgage company.

Requirements

• The requirements are usually stated when the window to apply for the grants is out.

How to Apply

• You can visit their website to fill out the online form or you can call their office at (916) 444-2615 to get all the details required for this grant program.

2. Local and State Government Grants

Most Local and State Governments usually sponsor housing grants for qualified first-time home buyers in the state. Grant which an individual can qualify for starts from $500 or it could be conditional. You can apply for the grants when you are about to make a down payment, your closing costs, or when you are applying for a mortgage rate reduction.

Requirements

• Most local and state housing grants usually require that buyers must meet the minimum credit standards.
• Applicants for this grant should earn a household income within a specific, lower-income range as stated by the grant-issuing organization.

How to Apply

• You should look for your municipality’s public-facing website, search for “housing assistance” or “housing grants,” and review your local program requirements.
• After that, you are expected to fill out their online form and attach the required documents as stated on the website.

3. The Downpayment Toward Equity Program

The Downpayment Toward Equity Program is yet another available grant program a black first-time home buyer can access, the United States Congress introduced a bill titled The Downpayment Toward Equity Program. This home buyer grant program is designed for first-generation home buyers, with extra grant money available to renters who are not economically or socially balanced. Most African Americans are the beneficiaries of this grant program. The Downpayment Toward Equity Program grants up to $25,000 to qualified applicants purchasing their first home. Note that the grant you receive from this grant program can be used to pay for closing costs, make a down payment, lower your mortgage rate by using discount points, and it also can be used to cover other mortgage-related expenses.

Requirements

• The requirements are usually stated when the window to apply for the grants is out.

How to Apply

• You are expected to fill out their online form and attach the required documents as stated on the website.

4. The Homebuyer.com Forgivable Mortgage

The Homebuyer.com Forgivable Mortgage as the name implies might be a forgiving loan program, but in all aspects, it shares similarities with regular housing grant programs. All home buyers will receive approval cash for a down payment of up to 5 percent of the house purchase price and this must be without interest charged and no repayment required. Note that not everyone who applied for the Homebuyer.com Forgivable Mortgage will receive the grant.

Requirements

• Applicants should have average credit ratings (minimum).
• Applicants must qualify for an FHA loan and agree to accept a 30-year fixed-rate mortgage.
• Applicants for this grant may also be required to attend a 1-hour online educational seminar.

How to Apply

• You are expected to fill out their online form and attach the required documents as stated on the website.

5. Closing Cost Assistance Programs for Home Buyers

The closing cost assistance programs are home buyer stimulus plans designed to pay up to 100 percent of a home buyer’s purchase closing costs, including title expenses, transfer taxes, and mortgage fees. Home buyers can apply for closing cost assistance through a local housing agency, this is not the same as their lender. This program is also designed for lower-income home buyers with an average credit score.

Requirements

To qualify for this program, applicants must have an average credit rating. The buyer and the home must meet the agency’s minimum quality standards.

How to Apply

• You are expected to fill out their online form and attach the required documents as stated on the website. (You can search for your state’s housing agency on the National Council of State Housing Agencies website.)

In Conclusion, It is important to note that there are some boxes you must tick in order to qualify for a home buyer’s grant hence you must conduct your diligence and be well prepared before applying for any of the available grants.