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Are down payment grants still available? I read something about a bill not allowing those anymore?

Profile picture for nuna.a86
A read something about a bill that starting oct 1, 2008 those grants wouldn't be allowed anymore?
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July 22 - Blue Springs
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Profile picture for kevin2009
grants are still available.... for more information, you can visit:
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July 27
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Michael-it must depend on the particular city because I have ran into this quite a few times in various states and have not been able to complete the refinance, even when I was just doing a rate-and-term.  It may ust also depend on how the grant is structured.

nuna.a86-I guess this brings up a good question for you to ask prior to accepting :-)
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July 24
Grants are still available and can still be used to satisfy the down payment requirements for a purchase transaction.

In my local market (Greater Cleveland, OH) there is a wide selection of grant money made available every year.  The grants are typically offered based on geographical location or income level.  Your best bet is to contact the housing department in the city you hope to purchase in.

At this point in the year it may be more difficult to find the grant money as it is often allocated on an annual basis.  If this is the case, I suggest that you plan on pursuing this early in 2010 to improve your odds.

Unfortunately I must disagree with Ms. Lacey below.  You can refinance your first mortgage with a goverment grant on title as a second lien.  I have successfully completed numerous refinances with this scenario.  The caveat is the goverment agency will not agree to cash out transactions.  It must only be a mortgage to mortgage refinance.

For FHA purchases, you can also obtain your down payment in the form of a "gift" from a family member, employer, church or charitable organization. 

If you would like further assistance, please do not hesitate to contact me.  I am licensed in the state of Missouri and would love the oppurtunity to assist you.

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July 24
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Check with the city you are looking to purchase in.  Some offer grants to people purchasing in areas they are trying to turn around.

Sometimes the grants are considered a loan and will be a lien on title.  If you stay in the home for a certain period of time, then it doesn't have to be paid back.  If you sell the home before the period is up, you have to pay it back.

The drawback to this is you will not be able to refinance your original purchase loan.  Since the grant appears as a lien, a subordination agreement has be attained and I have not had one city agree to this. 
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July 24
Profile picture for Tameko
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Yes there are alot still available, the best place is to check with your local authorities that is the best place to start.
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July 24
Correct, that is, correct if the grant is non-governmental.  Government grants are still ok.
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July 22
 

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