Pros & Cons of a Government Homebuyer Grant

A mortgage grant is a great opportunity for home buyers who want to purchase a home but do not have the initial downpayment available. We can help you discover how much you qualify for but before you apply, it is important to know both the pros and cons of these loans. It is best to be fully informed before moving forward with applying. Review the following information before submitting your application.

Pros of a Government Homebuyer Grant

Zero Down

Right off the bat, a huge advantage is that these grants require zero downpayment. You can save 20% of your home cost. This is thousands of dollars in your pocket.

No Repayment

This is a grant so repayment is not expected. This means that if you have money saved up then you can rest easy using it for future mortgage payment and not dump it all on your upfront downpayment.

GRANT MONEY

Bad Credit or No Credit is Fine

You can qualify for these grants even if you have bad or no credit. This is a huge relief to home owners who feel they will be denied a loan or grant based on their credit score.

Fixed Rates

Get locked into a fixed rate loan. This allows you to plan ahead and make sure you’re not getting in over your head. Don’t be surprised with a spike in your rent or loan down the line that leaves you financially stressed. Get a big break on your downpayment and get a steady interest rate that helps you feel secure.

Cons of a Government Homebuyer Grant

Limited Grants Available

Zero Down Mortgage Loans are running out. These have always intended to be temporary. While they offer a lot of benefit to potential homeowners, the homeowner must take advantage of these loans sooner rather than later. This puts pressure on home buyers to apply for these loans while they are still available.

Credit Scores

While these loans are available to people with no and bad credit, it is helpful to have a credit score of at least 620. Luckily, we can help you improve your credit before applying. Learn more about credit score improvement.

Restrictions on the Type of Home You Can Buy

There may be restrictions on the type of home these grants will qualify for. This also will not apply for investment properties that you do not plan to live in.

Limit on Income

You are expect to qualify by showing you have a limit of income – in other words, your income to home purchase must show you cannot pay for the downpayment.

What now?

The best way to evaluate if a government downpayment grant is by filling out our Grant Money form and consulting with one of our representatives. We will help you determine the best option for you and help you discover the joy of home ownership.

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