Friday, July 6, 2012

Are there Grants for First Time Home Buyers?

The $5000 Grant for First Time Home Buyers is a program that is not very well known nor advertised.  Few lenders, from my knowledge, offer the program, but it is very much real and available although only in a few states.  Luckily, one of those states is Virginia.  Applicants will have to meet certain requirements and the program has many restrictions, but we have several clients that have bought homes using this program and in all reality, it has been a true God-sent for them.  It greatly reduces the amount of money that the buyer has to bring to the closing table and if the seller offers closing cost assistance, it puts the buyer in a much better position.

Below, I list some of the requirements for the program in "bank speak." To summarize key points: income limits are based on the number of people in the household (the more people in the household, the higher the income limits).  The buyer must live in the house for at least 5 years or they will have to proportionally repay the grant money. You must be a first-time home buyer which usually means that you have not owned a home in the last 3 years.  Not listed below, but also an important point is that the buyer's credit score will need to meet a minimum requirement.

In order to correctly determine whether the buyer will qualify or not, he/she will need to apply for the program.  If you are indeed a first time home buyer, then it is definitely worth trying, but I wouldn't sit on it.  The funds are limited.  If you are indeed interested in learning about this program, contact me ASAP so my team can help you take advantage of this great opportunity and help you find a great home!!

  • Maximum subsidy is $5000 per homebuyer
  • Funding is provided as a 4 to 1 match
  • The homebuyer must contribute at least $1,000
  • The homebuyer must have income that is less than or equal to 80% of HUD median income for the area, adjusted for family size
  • Purchased home must be used as the homebuyer's primary residence
  • Homebuyer must meet the definition of a first-time homebuyer as defined by the Cranston-Gonzalez National Affordable Housing Act of 1990
  • Retention period is five years
  • Borrower must complete Bank-prescribed financial literacy training
  • Home must be located in the Bank's district, which includes Alabama, the District of Columbia, Florida, Georgia, Maryland, North Carolina, South Carolina, or Virginia
  • Eligible properties include:
    • Owner-occupied 1-4 family properties
    • Townhouses, condos
    • Foreclosed properties
    • Cooperatives
    • Manufactured and Mobile Housing
    • New construction (within 30 days of closing) 



    Marjorie Chacon
    Prestige Property Group, LLC
    14067 Crown Ct
    WOODBRIDGE, VA 22193
    Direct: (703) 819-6337 
    Assistant: (240) 377-7104
    Office: Office (703)494-0404

                        For quality service, please contact us and a member of our team will be more than happy to assist you.   

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