Grants for Homeownership
A grant is a form of financial aid that doesn't have to be paid back. There are many programs involving grants for homeownership, but that doesn't necessarily mean the government will give you money to buy a house.
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HUD
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The Department of Housing and Urban Development (HUD) has several programs designed to help people buy homes when they might not otherwise have the means.
Process
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You can't get funds directly from HUD programs. HUD grants money to states, municipalities and other organizations, and they use it to help citizens in need.
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Types
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HUD's affordable housing programs include the following: HOME Investment Partnerships, which gives money to the states to build affordable housing; the Self-Help Homeownership Program (SHOP), which allows you to contribute sweat equity to the construction of your new home; and the Homeownership Zone, which is aimed at revitalizing run-down neighborhoods.
Misconceptions
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No HUD grant covers all the costs associated with buying a house, and you must be able to qualify for a mortgage to qualify for HUD programs.
States
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Several states sponsor programs at the state or local level that can assist you in buying a home. One example is New York's Affordable Home Ownership Development Program, which gives funds to municipalities, nonprofit organizations and charities to develop affordable housing.
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References
- Photo Credit Elizabeth Smith
