Grants to Help Buy Foreclosed or HUD Housing
American citizens can apply for government grants and loans at any time. Many of these programs do not require credit checks, security deposits or co-signers. Even if you have a bankruptcy or bad credit, you qualify to apply for this money to help buy foreclosed homes and HUD housing. Government grants are approved and issued by lesser agencies inside bigger government organizations. For example, the federal government grants funds through the Homeownership Assistance programs in each state.
The American Dream Downpayment Initiative
Each state has its own programs that are developed with the grant money allocations. For example,The American Dream Downpayment Initiative (ADDI) is a homebuyer assistance grant program funded by the department of Housing and Urban Development (HUD). ADDI provides funds in all 50 states. Their program goal is to increase lower-income and minority homeownership rates and to revive and stabilize at-risk communities. ADDI helps first-time homebuyers with the largest obstacle to homeownership: closing costs and downpayments. To qualify for ADDI assistance, individuals must be first-time homebuyers purchasing single-family housing. The purchase can be one- to four-family housing, a condominium, a cooperative or manufactured home. The homebuyer's income may not exceed 80 percent of area median income.
The Neighborhood Stabilization Program
The Neighborhood Stabilization Program (NSP) was created to stabilize communities that have endured the burden of heavy foreclosures. The goal is to establish financing methods for the purchase and redevelopment of foreclosed homes in neglected neighborhoods. In Indiana, for example, more than $83 million has been allocated to aid prospective homeowners. They will be granted $15,000 to purchase a foreclosed home--as long as it will be their primary residence. The cash must be utilized for a downpayment, home repairs or closing costs. Purchasers are required to stay in the home for a minimum of 3 years. Homebuyers cannot obtain aid straight from HUD. NSP grant funds are given to community grantees, like local banks, nonprofit organizations and community development programs within each state.
The Good Neighbor Next Door Initiative
HUD's Good Neighbor Next Door Initiative was designed to promote a restoration of neglected areas by providing firefighters, law enforcement officers, emergency medical technicians (EMTs) and teachers the chance to acquire homes in these communities. HUD's grant money is used to offer a considerable enticement in the form of a 50 percent reduction off the list price of qualified properties. You must commit to live in the property for 36 months as your only residence.
Tags: American Dream, American Dream Downpayment, closing costs, Door Initiative, Downpayment Initiative, Dream Downpayment, Dream Downpayment Initiative
