First-Time Homebuyer Grants in Ohio – What You Need To Know

Are you familiar with homebuyer grants? In today’s economy, saving up for a down payment to buy a home can seem impossible. With rent payments, car payments, student loans, and other financial obligations it may seem too far out of reach for many people. If you’re in that boat, don’t despair. You still may be able to realize your dream of owning your own home with one of the many first-time buyer grants available today. Don’t know what those are? Read on to find out what you need to know about first-time homebuyer grants in North Royalton.

First-Time Homebuyer Grants – Overview

Homebuyer grants in North Royalton and all over the country primarily help qualified buyers with the down payment. And the great thing about these grants is that you don’t have to pay them back, as you would with other forms of down-payment assistance.

The funds from such a grant can help you cover the down payment of closing costs. Since this is basically free money, it can help you afford a home now with no future strings attached.

The idea behind these grants is that when people become homeowners, it helps not only those individuals but neighborhoods and the larger society by fostering stability and generational wealth. It can also promote local spending and so help local small businesses. And then, of course, when there are more homeowners, counties, and municipalities collect more in property taxes. In short, it benefits both local and state economies when homeownership is encouraged.

6 First-Time Homebuyer Grants

There are quite a few first-time homebuyer grants available today, and they include . . . 

• HomePath Ready Buyer Program – A homebuying program backed by the government-sponsored Fannie Mae that allows you to get up to 3% of your home’s purchase price to apply to closing costs. What makes this program particularly attractive is that there are no income restrictions and no minimum credit score requirements for participants. This allows for virtually anyone with an eye on owning their own home to take advantage of the offer without having to worry about being disqualified based on their current financial situation. Plus, buyers will benefit from additional discounts from participating HomePath lenders who can offer even more savings when you choose them for your mortgage loan needs.
• National Homebuyers Fund – Sponsors down-payment and closing-cost grants that can add up to 5% of  the home’s purchase price (and is not limited to first-time buyers). Qualifying for an NHF grant involves meeting certain income requirements and having acceptable credit histories. These grants can be used for down payments, closing costs, or other approved expenses related to buying a home. In addition, the fund provides educational resources to help potential buyers understand their options when purchasing a new home. With these tools in hand, applicants can make informed decisions about their financial future. For those looking to take advantage of the NHF program, it’s important to know that there are restrictions on how much money you may receive and what type of property you’re eligible for.

• Bank of America Programs – designed to help with down payments and closing costs by providing up to $7,500 in lender credits for closing costs and up to $10,000 in down-payment help (though the mortgage must be through Bank of America)
• Chase Homebuyer Grant – Requires purchasing in a low- to moderate-income tract and offers up to $2,500 in grant money, as well as up to $5,000 in Black-majority neighborhoods, with funds applied primarily to closing costs, but also to down payment depending on other factors
• Down Payment Toward Equity Act – 2021 legislation that provides a grant of up to $25,000 for first-generation, first-time homebuyers who meet the qualifying criteria
• State and Local First-time Homebuyer Grants – Home-buying assistance closer to home offered by some states and local governments and certain lenders. (To find out more about these and what is available in your area, contact a North Royalton agent at (440) 628-1321.)

Qualifying Conditions For First-time Homebuyers

Keep in mind that not all first-time homebuyers are eligible for these programs. Typically, they are geared toward buyers who can be classified as low- or moderate-income buyers, a designation which depends in large part on location.

Here, though, are the common qualifying conditions  . . . 

• Income – With respect to income, many of these programs require that you income be at or below 80% of the area’s median income.
• Home price – Usually, grant spending is restricted to within a certain price range, which, of course, depends on the local housing market.
• Buyer contribution – Many homebuyer grants stipulate that the buyer must pay a certain amount, often 1% of the purchase price or $1,000, whichever is greater.
• Residence status – In most cases, grants are available only for a home that will be a primary residence.
• Education – Quite of few of the programs require grant recipients to complete a homebuyer education course before receiving funds.

First-Time Homebuyer Grants Assistance

As you can see, then, homebuyer grants provide an avenue for people to become homeowners – people who otherwise wouldn’t be able to. But for first-time buyers, it’s often difficult to know what grants are available for them and which one(s) will best serve their needs. Our experienced agents are knowledgeable and ready to help you find the right program to realize your dream of owning your own home.

So if you’re looking into first-time homebuyer grants in North Royalton, be sure to contact us today at (440) 628-1321 for the assistance you need.

Northeast Ohio Cities We Buy, Build & Sell Houses In…

If you are looking for a home in northeast Ohio, there are many options available to you. You can find suburban homes with large yards and easy access to highways, or homes in downtown Cleveland or Akron areas with close proximity to amazing restaurants and nightlife. No matter if you are looking to sell, build new construction, or buy resale, there is a reason to reach out to Realty Done to guide you through to your new destination with less stress and overwhelm.