So you want to be a home buyer. You have been a renter and long to cure your homeownership blues, but don't feel you can scrape together enough funds for that almighty downpayment or closing costs. You are also disheartened to hear about programs you might have been eligible for drying up--like 100% financing--or tightening their reigns to consider only the most credit-worthy candidates.

Where can you take your dream and begin the process of fulfillment? If you don't want to wait and build up your piggy bank, you could look into government grants in your area. If you are a do-it-yourself kind of person, the best bet would be for you to check out the following websites:

HUD's website--You can search for local home buying programs by state.  When I did a search for programs in my home state of Wisconsin on this website, I was able to find a program called Downpayment Plus. 

This program pays up to $5,000 worth of closing costs for eligible home buyers with the following requirements:

• Earn household income at or below 80% of area median income
• Participate in home buyer counseling
• Sign a 5-year retention agreement
• Notify lender of refinance or sale of property, and repay pro rata portion of AHP subsidy as necessary
• Use the home as your primary residence

The program also requires a minimum of $750 paid out of pocket by the prospective home buyer toward closing costs and for the home buyer to attend a homeowner counseling session. You cannot apply directly for the program, but need to go through a local participating lender. They list the lenders and their contact information on the website.

I liked how the information was laid out on the site. Everything was in human-speak, contact information was clearly accessible and there weren't any overextended, "You are Guaranteed" promises made. I also liked that right up front, they had a calculator to help buyers determine whether they meet the income requirements for the program.

Grants.gov--This site, while well laid out, is not for the faint of heart or easily discouraged home buying consumer. You can search for available Federal Government Grants and actually submit your application electronically here. You will need to know what type of housing grant you are looking for. You also need to know what the requirements are for the grant and then you will need to write a proposal. 

Keep in mind that grant writing is a career path, so again, tread with caution.  If you are a patient and detail-oriented person who enjoys developing new skills as well as the research and discovery process, this could be your meal ticket.

The other option to finding first-time home buyer programs

Start working with a local real estate agent who specializes in working with first-time home buyers. You can do your initial research on programs in your area, than ask the agent about these programs. Be wary of these vague responses:

• I know there are first-time home buyer programs out there, I am just not sure what they are.
• Sometimes the local municipality will have bond money for teachers, policemen or firefighters.
• I don't really know, but I'll check with one of the lenders I work with.

These should be your indicators that you need to find another local real estate agent who has vested time into researching the local programs for first-time home buyers that are currently available and truly specializes in working with first-time home buyers. 

Six indicators that a real estate agent truly specializes in working with first-time home buyers:

1. Knows affordable housing options in the area that will hold their value or appreciate
2. Works with lenders who participate in specific grant programs
3. Knows of particular grant programs, whether they are available in your local market, what the requirements are and if they still have money available to fund the grants or if there is currently a waiting list
4. Can provide references of first-time home buyers they have worked with successfully
5. Has held educational first-time home buyers' seminars or has been a speaker at a first-time home buyer seminar
6. There are real estate agents who take the practice of specialization seriously and can help you explore your options

Share your first-time home buyer story

If you know of any first-time home buyer programs in your area, Connect2Agent would love to hear from you. Let us know by commenting below or This e-mail address is being protected from spam bots, you need JavaScript enabled to view it .

If you enjoyed this post, you might want to read:

• All a renter wants to know is, "Can I really get a mortgage?"
• Your real estate dream can become your reality
• How to achieve the goal of homeownership

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Posted by Rebecca D. Levinson