Grants - Real Money and Rehab

[Greg]

Contact the county at their Community Planning and Development division to see what they signed up for. They have grant money ready to give out.

The most popular grant is the Community Block Grant. It covers up to 10% of the purchase price for down payment and closing costs. It also allows up to 32,500 for improvements to the home. The combination of the 2 normally cannot exceed 32,500.

They will use their own list of approved contractors.

They will place a lien on the home. The payment will be deferred. There are sales price, property location, and income guidelines the borrower must meet. After 10 years only 15% of the original grant will be due. If they sell the home before 10 years some of the grant will need to be repaid depending on what year. Normally it is reduced by 10% at the end of year 2-9. Then 5% after year 10. 0% Interest.

So lets say you got someone who needs 10% down and the seller is paying the closing costs. Well, you might just get what you need with this.

Then they can rehab the home too.

There are various grants each county applies for. Some counties do not choose to use this grant. They may offer a construction grant or one of the various other grants available. Call and find out.

[Erik]

City grants are another possible source of down payment and closing costs. Many cities do it but usually have restrictions on both income and location. Still, free money.