Many people get pleasantly surprised when they learn that the government does provide free housing grants. This year alone, the government has allocated over $140 Billion for home grants. US citizens can apply for home grants to purchase homes, renovate real estate or buy income and rental property. The assistance is typically given in the form of low interest loans, down payment assistance and home grants. This offer is usually aimed at helping people with low or moderate income to own a home.
The primary source of free housing grants is the government through its grant programs for home buyers. Typically, the U.S Department of Housing and Urban Development (HUD), via a joint initiative with Federal Government as well as other banking players does offer these grants so as to encourage those who may be disadvantaged in one way or the other or those who the mainstream lenders may not assist to come out and buy a home.
These grants can be used for a wide variety of purposes such as place a down payment for a home, buy down the cost of the house or help with the closing costs. It is important to note that even though these grants are provided by the Federal Government, they are usually made available to the citizenry through state agencies. However, there are also other benefits which are quite similar to such grants which are made available to the masses directly from the Federal Government.
Even though there are numerous reasons why the government allocates such huge sums for this purpose, one of the main reasons why this is done is so as to spur economic activity as well as community engagement and investment by encouraging more and more people to purchase their own homes. Even though the 2004 US Census Bureau did report that about 69 percent of Americans owned homes then, there are still a huge number of Americans who are keen on buying their homes but are unable due to inherent requirements such as down payments and other closing costs. Grants tend to come in very handy in such cases.
It is also worth mentioning that even though there are some guidelines which may be cascaded down to the states from the federal government, many states are allowed by law to determine the most effective grant programs in their individual costs. In this regard, a state that feels that it needs to support its veterans who were injured in the line of duty more may opt to offer these home grants to that special group of people. On the other hand, there are those states which may have a large number of low-income families who may opt to come up with a program that specifically targets this disenfranchised group. It is therefore very common to find different states having different rules and regulations for their grant programs. This change is usually necessitated by the need to meet the unique client needs which may not be replicated elsewhere.
Once in a while. The Federal Government may decide to offer tax credits to those who may be referred to as first –time home buyers. Such offers are usually quite similar to grants in that the homeowner gets money for making the purchase after he or she has made the initial purchase. In certain instances, the grants that are offered to homeowners are not taxable. As a rule of thumb though, no homeowner should ever assume that the grants he or she has received are not taxable. It is always prudent to confirm with either a tax professional or your local housing authority whether any grants you receive are taxable or not.
Grants For Homeowners – Recommendations
Here are some of the institutions or agencies which offer grants for homeowners, they include but are not limited to the following:
1) Illinois Housing Development Authority
Mailing Address: 401 N. Michigan Avenue, Suite 700, Chicago, IL 60611
Phone Numbers: 312-836-5200
Web URL: http://www.ihda.org
Types of Grants: home buyers can receive down payment and closing cost assistance or even get down payment, closing funds as well as funds to rehabilitate their newly bought homes. These funding usually comes from two sources, these are the Illinois Affordable Housing Trust Fund Program and the HOME Investment Partnership Program.
2) USA Grant Application
Mailing Address: 29L Atlantic Ave, 112, Ocean View, DE 19970
Phone Numbers: 1-888-261-4837
Types of Grants: the company can assist in getting grants for mobile homes or parks, rental housing projects, first time home buyers, commercial property, land development, apartment buildings as well as new construction.