Home Grant Program | FHA Grants for First Time Home Buyers

The home grant program is a competitively priced loan program that does not require a minimum down payment from a borrower.
Borrowers use FHA grants for the down payment on a home, which this FHA grant is 3% and 4% of the total loan amount.
Most FHA grants for first time home buyers are only for first time home buyers, but this home grant program does not require buyers to be a first time home buyer.

FHA Home Grant Overview

Designed for borrowers that are financially stable and have met responsibilities such as:
- Stability of employment and income.
- Managing their finances and savings.
- Exhibit responsible repayment patterns.
- Have satisfactory credit history with a minimum FICO credit score of 620.
  - FHA loans will go lower on credit score.
    - For borrowers with a 580 FICO credit score or higher, the minimum down payment is 3.5%.
    - Borrower with under a 580 FICO credit score, the minimum down payment is 10%.
The home grant program is intended for families or individuals who do not have resources available for down payment and unable to save a sufficient amount for down payment.

30 year fixed rates, fully amortized.
The 3% and 4% home grant program may be used for down payment and closing costs.
1-4 units are allowed.
Borrower cannot own another 1-4 family residential property at the time of closing.
Maximum debt-to-income ratios are 50% with an Automated Underwriting Approval.
- Can go higher on debt-to-income on a regular FHA loan.
Housing history is required.
- If a borrower does not have 12 months housing history, the borrower will need 3 months bank statements demonstrating savings equal or less than the new housing payment.
- This is not required on the conventional home grant program.

140% of the Area Median Income or maximum allowed by FHA.
For area median income after January 1st, 2019, ask a Loan Originator to determine eligibility.
Debt-to-income ratios depend on the Automated Underwriting System (AUS) and caps for the FHA grant.