Our First Reality Check

Home buying has been so tough and we are nowhere near done. We got out hearts so set on a specific house we wanted, there was acreage and the land we wanted, everything seemed to be so perfect. We had a date set to go and see the mortgage lender next Wednesday and go visit the house Thursday and an offer was just accepted today without a home inspection. That his us right in the gut, we were so set on this place and so in love with it and it was taken right out from under us. I guess if its not meant to be something better will come along!

I decided to share some knowledge on grants today! I never ever would have thought we could qualify without at least 20% of the mortgage as a down payment which was a huge upset because when we found that house we wanted to do what we could and right away! This brings me to the topic of discussion, when you are short on cash ALWAYS do your research on what grants are available for your area and different ways you can get money to help with the home! Researching is going to be your best bet because for us, we are looking rural, there is a USDA loan for rural housing which is (kind of) similar to a VA loan in that they let you bundle in the closing costs with your mortgage to make it easier up front when you want to purchase a house. The issue with this is that it can increase the interest rate of the loan which in the long run, with no down payment you are paying for PMI (Private Mortgage Insurance) because you aren’t putting down 20% of the house. In my own words with my own knowledge PMI is basically insurance for the bank to make sure the money they are giving to you wont be lost if you stop making payments (since they;re giving you a disgusting amount of money to get a house). Anywho, these grants can help out in the beginning when you are looking to finance a house and some of them dont even require perfect credit!

I went to a meeting for this branch of homebuying called NACA, it basically is for low income people or even people who aren’t first time home owners but need help when they purchase a home. Basically, they offer the lowest interest rate because it is something that was started by the government allowing them to put funds back into the community. This was available in Buffalo I’m sure to help the area increase in value, since its “uppencoming”….again…! The NACA program wasn’t the right program for me because I like to get coffee from Tim Hortons or Dunkin’ when I want it and I don’t want to have someone looking at my daily expenses, which is what this place does. In contrast, a conventional loan or FHA loan looks at your monthly costs and income, etc. Although the other loans require a higher credit score, you would be surprised what you can get approved for with an average credit score. Additionally, some FHA loans allow you to put down some ridiculous amount like 3% or something which is SO worth it if you have been saving but don’t want to blow all your savings on your down payment if you know the house is going to need repairs and if you want to have fun (like me) and buy cute little house decorations and kitchen bowls, etc.

In the end, there are so many options and no ONE option will suit every single person so do your research and find out what kinds of grants are available in your area and ask someone about them! Trust me, homeowners and professionals are SO willing to help you! Even without compensation (lol).

-L