There are many Grant programs available in the Richmond Virginia area for 1st time Home Buyers. Being as there are so many to choose from I took the liberty to narrow down the best 2 sources. First off let me say that they are not both Grant funds per say but one of them is actually a down payment assistance program. Also don't forget that these programs are available for 1st time Home buyers ONLY! To qualify as a 1st time home buyer you must NOT have owned any property in the last 3 years. Let's take a closer look at the details of these programs.
First we have a classic Grant Money program which is provided through a local lender to remain nameless. You will have to contact me directly for this information. Grant Money is money given to the purchaser at closing and used to pay for down payment, closing cost, and points. If you qualify for this Grant you will recieve $7,500.00 in grant assistance. Here is how it works. This Grant is in conjuction with a specific property you already have a contract to purchase so you would have to qualify for a FHA loan with my lender, qualify for the Grant Funds, and then apply for the Grant Funds after you have a ratified contract to purchase a specific property. So the things we need to know 1st are:
1. Do you qualify for FHA financing?
2. Do you qualify for the Grant Funds?
To answer question #1 I will have my lender call you and prequalify you over the phone. To answer question #2 you will need to read below. Do you meet these requirements to obtain Grant Funds?
Grant Fund Requirements:
1. You must make 41K or less per year.
2. You must have $1,850.00 of your own money to put towards the purchase of the property.
3. You must have a 640 or higher credit score.
4. You must be a 1st time home buyer.
If you meet these basic requirements and you qualify for a FHA loan you should be able to purchase a home using Grant Money. There are a few other things that must be done but these are the main hurdles. It's usually smooth sailing if you can meet these requirements.
Now on to Down payment Assistance Money. This is very similar to Grant Money but the major difference is that the money is not a straight gift. It is actually recorded as a 2nd mortgage. However, there is no paymnet due on this 2nd mortgage and it will be forgiven after 5 years. So if you own the property for 5 years the 2nd mortgage is considered paid in full and wiped clean from the title. If you sell within 5 years you may own some if not all of the assistance money back! So it is a little different but it is also easier to qualify. To qualify you must meet the following requirements and be able to obtain an FHA loan as well. If approved you will receive 5% of the purchase price in assistance funds to be used at closing for down payment, closing cost, and points. This program is also in conjunction with a specific lender to remain nameless. Contact me for details.
Down payment assistance requirements:
1. You must make 41k or less per year.
2. You must have 1% of the purchase price of your own money to put towards the purchase.
3. You must have a 600 or better credit score.
4. You must be a 1st time home buyer.
So as you can see these are both attractive programs and relatively easy to qualify. Not only that but the time frame for approval is what sets them apart from other programs. Many Grant and Down Payment Assistance programs take months to get an approval. I chose these 2 programs because the approval time is much faster. For the Grant Money approval takes less then 45 days and for the DP assistance money it takes just around 10 days! That's lightening speed in this industry let me tell you! Both programs require you to take a short online class that teaches you everything about the programs. It's very simple and can be done and completed in just about an hour.
If you have any questions or would like to look into purchasing a home with Grant Money or Down Payment Assistance Money please feel free to contact me at your convenience. I would love to be of assistance to you and help walk you through the process step by step.
Visit my website for more Real Estate related information @ www.LeeNewcomb.LNF.com
Sincerely,
Lee Newcomb
804-928-4475
Lee.Newcomb@longandfoster.com
