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Down
Payment Assistance and Grants for first time home buyers |
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Down
payment assistance grants are typically available from two different
types of services: Government subsidized programs and charitable
organizations that utilize HUD/FHA guidelines that allows for
Down Payment Assistance (DPA) to be given to the homebuyer in
the form of a gift or grant. |
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Government
Subsidized Programs: |
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The
Community Development Block Grant program helps strengthen cities,
towns, and villages throughout the nation. Authorized in 1974
by an act of Congress, the program grants states and local communities
funds to provide housing and create jobs primarily for low and
moderate income people. |
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State
Administered CDBG |
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Also known as the Small Cities
CDBG program, States award grants to smaller units of general
local government that carry out community development activities.
Annually, each State develops funding priorities and criteria
for selecting projects. |
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Entitlement
Communities (Large City and County Programs) |
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The CDBG entitlement program allocates annual grants to larger
cities and urban counties to develop viable communities by providing
decent housing, a suitable living environment, and opportunities
to expand economic opportunities, principally for low- and moderate-income
persons. |
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Disaster
Recovery Assistance |
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HUD
provides flexible grants to help cities, counties, and States
recover from Presidentially declared disasters, especially in
low-income areas, subject to availability of supplemental appropriations.
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Charitable
Contributions |
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Those
charitable organizations that comply with existing HUD regulations
and policy guidelines are permitted to give cash gifts to eligible
homebuyers and do not need prior FHA approval to do so. |
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Here
are some examples: |
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5.25%
interest rate with no down payment assistance. - State
Program |
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5.99%
intereste rate with 5% down payment assistance - State
Program |
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$10,000
Principal reduction, 95% closing cost assistance, 1/2 of down
payment paid for. City Program |
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$10,000
to $14,500 based on Area Median Income Percentage % City
Program |
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First-time
homebuyer program which provides principal reduction, down payment,
and closing costs assistance up to $10,000.00. Also, may provide
a grant of up to $1,500.00 for Minimum Housing Standards repairs.
City Program |
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$14,200
for new construction, $9,500 for resale properties, For new
houses in select target areas, participants may receive up to
$25,000 County Program |
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3%
of purchase price contributed by seller. Charity
Program |
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FreeDownPayment.org
is a free service from GMAC Real Estate that puts you in touch
with a Realtor in your desired area who specializes in first
time home buyers. Our agents can advise and help you with the
various down payment assistance programs available. Most first
time home buyers don't realize they may qualify for reduced
interest rates and thousands of dollars in FREE money or grants
to help them with obtaining the American Dream. |
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