Home Buyer Grants and Assistance Programs

In this economy, hope is scarce but there is help for those who really need it. According to a recent study by the Census Bureau, 30% of American home renters are financially stable enough to afford monthly payments for a new home, though they don't have adequate savings for the initial down payment and closing costs. That's why several government and non-profit organizations have been offering to help eligible home buyers with these costs. There are many kinds of assistance programs available: home buyer grants and loans, affordable housing, and free counseling that will facilitate the whole home buying process. Some organizations offer to help with funding and construction materials if you are willing to build your own home, and use your own labor and sweat as the down payment. Unlike banks and other financial institutions, these non-profit organizations try to help home buyers as much as they can. If you are not eligible for any of their programs, they might be able to refer you to other organizations for which you might qualify, rather than just closing the door on your home buying opportunity.

The ADDI is a home-buyer assistance program, available through the U.S. Department of Housing and Urban Development (HUD). The ADDI grants are for first time home buyers only. Eligible candidates are low-income families who have not owned a home during the 3-year period prior to the day they apply for an ADDI home buying grant. The maximum amount a participant may receive is $10,000 or 6% of the home purchase price, which can be used for downpayment, closing costs and eligible home-improvement activities done within one year of the purchase. To find out more about the program, visit the HUD website or contact your local HUD agency.

American Family Funds for home buyers are available through the Dove Foundation. To receive a grant from American Family Funds, you must buy a home from a seller who agrees to participate in the program. In addition, you must qualify for a home loan that accepts charitable contributions. All FHA loans, for example, are eligible for this assistance program. The average grant amount is 3% of the purchase price, which will cover the down payment and closing costs. Call 1 - 888 - 869 - 0420 for more details.

Habitat for Humanity is an international non-profit organization that has been helping low-income home buyers and homeowners in all 50 states in the U.S. and 90 other countries since 1976. Although the organization does not provide grants for home buyers, they do offer low-interest home loans, a number of enthusiastic volunteers who can help you build your own home as well as affordable Habitat houses available for participating families. To learn more about Habitat for Humanity, call 1 800 - 422 - 4828.

Homes for All is a HUD-approved affordable housing provider that has been assisting low-income and moderate-income families to achieve their dreams of becoming home owners, for more than ten years. The organization offers home-buyer grants to be used for either down payment or closing costs. Currently, the average amount of grant per family is $3,000. In addition, Homes for All has a free counseling program that educates and guides first-time home buyers through each step of home purchasing. For more information, call (239) 656 - 4 ALL.

Mercy Housing is a non-profit organization that provides assistance for home buyers in certain western states such as Arizona, California, Colorado and Idaho. The Mercy Housing home-buyer programs include low-interest loans, free counseling for new home buyers, affordable town homes for low-income families, and self-help housing programs that assist you to build your own house. For more details, contact Mercy Housing at (303) 830 - 3300.

The USDA or U.S. Department of Agriculture offers grants and loans for farm workers who would like to buy, build or repair a home. To be eligible, a substantial portion of your income must be from your farm labor. A new home funded by the USDA must be modest in size but adequate for the family's needs. USDA low-interest home loans are available for farm workers in all 50 U.S. states. The home buying grants, however, are available in only certain states and local governments. Visit the USDA website for more information.