The idea of owning your first home may seem like an impossible dream if you do not have a large sum of money for a down payment. If that is your situation, there are several programs designed to assist you. One useful option is to get a grant from the National Homebuyers Fund (NHF). The NHF has aided both first-time homebuyers and repeat homebuyers with more than $300 million since 2002. Over 40,000 homes have been purchased through this organization. An NHF grant and loan can fund up to 5% of a buyer'€™s mortgage loan amount. 

Who qualifies for NHF grants?

Everyone in the United States is eligible to apply, so long as they work with a lender that participates. One of the unique features of NHF is that it is not restricted to first-time homebuyers. Additionally, the National Homebuyers Fund has higher income limits than many other programs.  The NHF grants and loans are available to low-income and moderate-income homebuyers. The minimum FICO score for this program is 640, and there is a maximum debt-to-income ratio of 45%.

How it works

There are two options:  Option 1) A grant that covers 5% of your total loan amount and will not need to be repaid. 

Option 2) A second mortgage with 0% interest, which will be forgiven after three years. It is likely to be large enough to cover your down payment or your closing costs.  The only requirement is that you must stay in the house for three years. As each year passes, you will get a portion of the balance forgiven. Getting your NHF loan combined with a loan from another program is even better.  If you're thinking about buying a home, but are concerned about the costs, you needn't worry! Grants from the National Homebuyers Fund are just one of many options available to you. Learn more about the NHF on their website.