If you’re a first-time homebuyer, seeing how much the down payment and closing costs add up to can leave you surprised, to say the least. Pre-qualified, first-time homebuyers that use Diamond Credit Union might have additional resources to help with costs, depending on government funding and qualifications.
First-Time Homebuyer Grants
There are several first-time homebuyer grant options for you. Diamond specifically partners with First Front Door (FFD), a Federal Home Loan Bank homebuyer grant program. The FFD is government funding that is typically available starting in March of every year. It is available until the funds run out which could be anywhere from a few months to the end of the year.
How to Apply for a First-Time Homebuyer Grant
If you are a first-time homebuyer using Diamond for your mortgage, the Mortgage Team will collect your information and apply for the grant to see if you qualify. The FFD program sets the guidelines for who qualifies for the grant.
The initial qualification is that you haven’t owned a single-family home used as your primary residence in the last three years. The program will also look at the median household income in the county that you live in and compare it to your household’s income.
Your household’s income includes everyone who lives in your home, including any dependents. There is no minimum or maximum credit score to qualify for a first-time homebuyer grant, but there are income limits.
If You Qualify for First Front Door
The First Front Door Program is a grant program administered and controlled by the Federal Home Loan Bank (FHLB). Qualifying members can apply to this program with a maximum grant of up to $15,000 per transaction. This program is only available while grant funds last.
It’s also important to keep in mind that to be free and clear and not have to pay any of the money back, you need to stay in the home you buy for at least five years. If you do end up selling before the five-year mark, you will need to give back a prorated amount of money to FFD.
What are First-Time Homebuyer Benefits?
There are several benefits to applying for this grant, that can help make it easier for you to own a home.
The thought of investing in a home can sometimes cause more stress than excitement. The average cost of a home has increased, and down payments and closing costs make up for a major part of the expense.
Grants for first-time home buyers can also lessen the monthly mortgage costs. With this financial assistance, it’s also possible that you can afford a home that you wouldn’t be able to afford otherwise.
When you’re able to purchase a home, it also means you can start building home equity. Your home equity will fluctuate the longer you live in your home and whenever you make mortgage payments.
This equity can help you through a home renovation loan or home renovation line of credit, or if and when you’re ready to sell, higher home equity equals a higher home value.
You may also receive tax benefits for being a first-time home buyer. The First-Time Homebuyer Act provides up to $15,000 in refundable federal tax credits.
How These Benefits Help the Housing Market
When houses are more accessible and affordable, it creates a higher demand in the market. This drive supports the overall economy. Along with this, more homeowners mean it’s more likely that you’ll invest in the home and support the surrounding communities.
First-Time Homebuyer Resources
Not every lender works with government assistance programs to provide first-time homebuyer grants. Diamond does, and the Mortgage team is here to look out for you through every step in the home-buying process.
- PA Housing Finance Agency offers counseling and education courses for first-time homebuyers. The counselors can help you improve your housing conditions and understand the responsibilities of owning a home.
- U.S. Department of Housing and Urban Development’s website highlights laws and regulations you may not be aware of as a new homeowner. By understanding your rights, you can make more informed decisions about your new home.
- Consumer Reports test products and services so you can ensure you’re looking through the best options. Specifically, these guides assist you in getting the most out of your home inspection.
- Diamond Mortgage Blogs have a wide range of articles that can answer frequently asked questions about buying your first home and whether or not you’re ready to buy a home.
