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The Wide Array of US Government Grants: Home Grants

You have been searching and searching and you have finally found your new home. You can yourself making breakfast in the kitchen, grilling on the back deck, or anticipate seeing your children playing in that large, fenced yard. However, you have just realized that buying your dream home requires a lot of upfront cash; cash that you either do not have or that you do not want to sink into the purchase of a home considering the present instability of the economy. One option to consider is the availability of a home grant to assist you in making the purchase of your dream home a reality.

Home grants are grants that can come from nonprofit agencies that are provided to individuals to assist them in making down payments on a home purchase. Prior to 2008, a number of nonprofit agencies provided home grants to individuals who were obtaining houses with all loan types, including federal loans.

In 2008, President Bush signed a law making it illegal for a nonprofit to provide home grants on houses secured with a federal loan. Thus, a number of nonprofit agencies who had provided these home grants went out of business.

However, if you are securing a loan with private funds there are still several nonprofits that offer home grants in the form of down payment assistance. For example, the HOME grant offered through Mission Branch is available to individuals who have secured private lender funding and need down payment assistance. For more information visit: Home Grants

Home grants can also originate from programs offered by your state to assist individuals in obtaining the funds that they need to close on their new home. For example the state of California offers the School Facility Fee (SFF) Down Payment Assistance Program, which provides a conditional home grant to qualified home buyers in the amount of the partial or full school facilities fees that were paid by the builder.

If the home buyer remains in the home for period of at least five years, the entire amount provided for the down payment is forgiven and is fully granted to the homebuyer. For more information visit:

Overall, home grants are an excellent way to reduce the costs associated with the purchase of a new home. To begin your search, you will need to find out what programs are available in your state and local community that could assist you in obtaining a home grant. If you elect not to use a government funded loan and secure funds from a private lender, you may want to consider checking into nonprofit organizations that offer home grants in the form of down payment assistance. Best of luck in securing a home grant!


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