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Free Money for a Down Payment

Purchasing a Home > Free Money for a Down Payment
Date: 01/10/2007    Free Money for a Down Payment

Is trying to come up with a down payment for a home stressing you out? It can be a very daunting task. Many Americans earn enough money each month to be able to make a mortgage payment, but do not have the time to wait and save up for a sizeable down payment contribution. If you fall into this category, there may be a light at the end of the tunnel. There are compassionate organizations that have come up with programs to make homeownership easier by providing buyers with down payment money.

This may sound too good to be true, but there really are groups out there with the means to finance your down payment. In fact there are non-profit organizations all over the country that have designed programs for your down payment needs. While the amount available from each group will differ, it will be a percentage of your home price and some programs even offer up to 100% of your home price as a down payment grant. This can be a huge help in making home ownership a reality for you.

An even more pleasant thought is that this grant is free; you do not have to pay it back later. You will be required to meet certain requirements though. You will definitely have to qualify for a home loan program that allows for down payment gift funds. Most commonly these will be conforming or jumbo FHA loans. Many other programs require that you participate in their financial management or home owning basics programs. This is because these organizations also aim to educate their recipients so they will be financially responsible, aware home owners. So you not only get free money but free education also!

There may be other qualification requirements including income or asset restrictions. Many programs also put a limit on the price of the home you can buy using their funds. These types of rules are to ensure that they are giving out money to those who truly need it.

One nice thing is that these grants are typically applicable with almost any type of dwelling purchase. This includes single family homes, condominiums, town homes, manufactured homes, and even homes that are being constructed.

While there are hundreds of organizations to choose from, you might try contacting one of the following groups. These are listed on the FHA website: the AmeriDream program, the Nehemiah program, the Housing Action Resource Trust (HART) program, Consumer Debt Solutions, Inc., and the Partners in Charity organization. The government also has their own excellent down payment program through the Deptartment of Housing and Urban Development (HUD.) This program is called the American Dream Downpayment Initiative (ADDI.)

You can get started by contacting one of these organizations to see if you qualify for their program and the free grant. The representatives of these agencies will let you know the details of the program and what you will need to do to obtain the money. That could be your first important step towards becoming a home owner!

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