Zero-Down Home Loans and Down Payment Assistance Grants

Most home buyers do not realize that they can purchase a home with little or no money down. Some of the programs offer money that can be used for the down payment and closing costs on the purchase of your home? Some of the loan programs and down payment assistance grants offer Free money for first time home buyers who need help with the down payment and closing costs. This money comes in the form of government grants. Listed below are links to $0 down loans, first time home buyer grants, Federal tax credits and other important loan information.

In many states the grant amounts are in the multiple thousands of dollars. This is free money that shouldn't be passed up! Simply go to your state's grant page to get the necessary information. If your state is not listed below, it is because there is no state agency that provides grants to first time home buyers. That does not mean that you have no access to first time home buyer grant money.

Home Buyer Grants

Important Information Update Regarding Non-Profit Down Payment Assistance Programs

On July 30, 2008, the Federal Government passed H.R. 3221 - Housing and Economic Recovery Act of 2008. Section 2113 of the bill prohibits seller-funded DPA (Down Payment Assistance) for loans backed by the Federal Housing Administration. Prior to this bill, the seller could contribute up to 6% to the buyer to cover either a down payment or closing costs on an FHA loan. The changes are effective October 1, 2008. This bill is means the Elimination of Non Profit Down Payment Assistance. Only Government funded housing grants are available for Down Payment Assistance under the American Dream Down Payment Assistance Act. Follow the link for the housing program in your area.

Besides the state programs, there are federal funds and grants available to would be home buyers through the Homes and Communities program of the United States Department of Housing and Urban Development. Almost all of the down payment assistance programs, tax credits and housing grants must run under an FHA loan. Getting pre-qualified for an FHA loan is the best place to start before searching for the right DPA program. Plus, with the Federal Government passing H.R. 3221 - an FHA loan is going to be the only loan available that will offer a homebuyer the opportunity to purchase their home with little or no down payment.