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Housing grants

Hi lender411.com team, Lookin to get a mtg w/o huge down. What are some housing grants besides HUD? I do not want to go through HUD for personal reasons. 'ppreciate! by gward709 from Scottsbluff, Nebraska. Jun 4th 2019 Reply


William J Acres (William_Acres)
#73 ranked lender in Arizona - 8,726 contributions

Much more info needed to answer your question and advise you.. First and foremost, HUD does not offer grants.. they work with local agencies and allow those agencies to offer assistance while using a HUD overseen mortgage. Most all grant programs have maximum income requirements.. meaning that if you make too much money, you wont qualify.. They are intended for low income borrowers. Without knowing how much you and your household income is, we cannot advise you as to which program you might qualify for. But in general, every conforming loan program out there is being run by the government.. FHA, USDA, and VA are all overseen by HUD, and Conventional loans are still in conservitorship as a GSE (Government Sponsored Agency). Also, most all grant programs only work if you qualify for a conforming loan program.. With this in mind, Conventional financing requires 3% down if you are a first time home buyer,, if not, then you need a minimum of 5%. Ideally, you would have a 740+ mid credit score, but if your scores are lower, then there still might be a loan available to you. Keep in mind that with conventional financing, the higher the score the lower the interest rate AND the lower the monthly mortgage insurance rate. However, with FHA, they require 3.5% down, but the rate is not that much higher if you have lower scores.. and the monthly mortgage insurance is the same regardless of your credit score. VA is probably the best program out there, but you must have VA benefits available to you. With VA, you can finance 100% of the purchase price of the home, and if you are not exempt from the funding fee, VA will finance that as well. and with all VA loans, there is no monthly mortgage insurance. USDA is a good program that will allow you to finance 100%, but the home must be in a USDA defined Rural Area... and USDA, like the grant programs has income restrictions. Realistically, you need to decide if your personal reasons are more important to you than owning a home.. There are programs out there, but most all are overseen by HUD.. If you decide to take the leap, then I would advise you contact a mortgage banker/broker and apply with them. Once they see your complete loan profile, they will be better equipped to advise you properly. Also, by applying with a Banker/Broker, you have an advantage because he's familiar with local customs and works with many lenders with each one offering a different type of lending program. This is unlike the local bank which typically only has a few lending programs. The more lenders, the more lending options, and the more likely your scenario will be accepted.. Plus, the banker/broker is experienced in seeking out the best loan terms for your particular scenario, and he has lower overhead which typically results in lower rates and fees than most of the big box banks. I'm a preferred Lender with California and Arizona being my primary markets. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. 480-287-5714 WilliamAcres.com NMLS# 226347 / LendUS, NMLS 1938/ AZMB0121893

Jun 5th 2019
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William J Acres (William_Acres)
#73 ranked lender in Arizona - 8,726 contributions

https://www.hud.gov/program_offices/administration/grants/grantssrc

Jun 5th 2019
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