There are grant programs available for first-time home buyers through the federal department of Housing and Urban Development, or HUD. HUD issues a list of home-buying assistance programs by state. The Federal Housing Administration, or FHA, an agency within HUD, is the program that issues the loans to those people who qualify. The loans are administered by a lender that works with the FHA.Continue Reading
First-time home buyers may qualify for lower financing costs and mortgages through a program offered by the FHA. Each state has different lending guidelines and programs which can be found through a local FHA office. FHA loan limits are fixed and will determine how much a borrower can receive from a HUD-backed mortgage.
FHA works through approved lenders that offer the loan grants. To qualify, certain information is required, such as income, current debts, other loans and employment history.
Depending on the type of grant, the lender may require a credit report to check on credit history and past reliability as borrower. To help in securing a loan or advice on how to go about applying for a grant, HUD sponsors advise going through a housing counseling agency. The program will help first-time home buyers with advice on where to find the nearest FHA lender and help in filling out the paperwork to apply for low-interest rate mortgage.Learn more about Finding a Home