At the start of 2022, the median sale price for an American home was $400,600.
For many aspiring homeowners, this figure seems out of reach. Even if you have some savings in the bank, how can you come up with the required downpayment amount — let alone afford your monthly mortgage payments?
The good news is that there are grants for housing (also called down payment assistance) that can help you reach your goal of becoming a homeowner. Take a look at our list below and see if there’s a housing grant you might qualify for.
1. FHA Loan
This is one of the most popular grants for low-income families to buy a house. It’s ideal for first-time homeowners or individuals with less-than-stellar credit.
FHA loans are guaranteed by the Federal Housing Administration. You can qualify if you have either:
- A credit score of 500-579 and a 10% down payment
- A credit score of 580 or above and a 3.5% down payment
This is one of the easiest housing grants to get, but there is one downside: Unless you put down at least 10%, you’ll pay mortgage insurance premiums for the life of the loan.
2. Good Neighbor Next Door (GNND)
If you meet the requirements, the GNND program is one of the best options for housing grants. To qualify, you’ll need to:
- Be a law enforcement officer, EMT, firefighter, or K-12 teacher
- Commit to living on the property for at least three years
- Agree to a silent second mortgage for the price of the discount
What’s so great about this program? It offers an incredible 50% off the list price!
3. Fannie Mae Loans
Fannie Mae offers two different paths to homeownership.
One is their conventional Standard 97% LTV Loan. Buyers need to put only 3% down and have a minimum credit score of 620 to qualify.
The other is their HomeReady Loan program, which is geared towards low-income buyers. You’ll still need a 3% down payment and a 620+ credit score, but you have to earn below 80% of your local area median income (AMI).
4. Freddie Mac Loans
Freddie Mac’s HomeOne Loan has the same requirements as the Fannie Mae Standard Loan, but applicants need to have a minimum education level to qualify.
Their Home Possible Loan is similar to the HomeReady loan program, but it’s open to repeat buyers as well as first-time homebuyers.
5. Other Federal Housing Grants
Still looking for the right housing grant for your circumstances? Keep in mind that there are state-specific grants for first-time homebuyers, so it’s worth exploring housing grants for your state.
Other options you might look into are the USDA loan for rural properties, VA loans for current or former military members, or HUD’s Dollar Homes program.
Apply for a Housing Grant Today
So, what do you think? Could you qualify for one of these government grants for housing? Bookmark this list and refer back to it as you continue to research the best housing grant for your needs.
Housing grants aren’t the only topic on the table today. Keep browsing our site for more great advice on real estate, lifestyle, and finances.