Home Buyers

A grant is money given to an individual or an organization that does not hold an obligation of repayment. In that respect, it differs from a loan, and does not incur any debt or interest. Grants can be given out by foundations and governments. Grants to individuals can be either scholarships or donations. A first time home buyer grant is a monetary gift to an individual for the specific purpose of helping her purchase her first home. First time home buyer grants are awarded based on few criteria, primarily financial need and income qualifications. Many states have initiated grant programs to help lower income residents with the purchase of their first home. The federal government, through the Department of Housing and Urban Development (HUD) also provides grants to first time home buyers. Funding for various state first time home buyer grants is nearly always available. In fiscal year 2006, only two states exhausted their budgets for first time home buyer grants. Most states require potential first time home buyers to attend classes and/or workshops explaining the process of buying a home. Within these classes is instruction on the application process and how to obtain first time home buyer grants that are currently available.