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How To Get A First-Time Home-Buyer Grant

Learn more about what a home-buyer grant is, if you qualify and where to look for one.

First-time home buying can be a confusing process to navigate. You may have heard that grants can help you to cover some of the costs. Grants are one of the many benefits available to first-time homebuyers that make costs a little easier to manage. Still, many people are left wondering: Just how do I get a first-time home-buyer grant?

Here’s a simple guide to help you navigate the process with ease. Let’s start with the first-time home-buying basics.

First-Time Home Buying: The Basics

There are two major first-time home-buyer programs to help you with the home buying process: First-time home-buyer grants and first-time home-buyer loans. These tools are easy to mix up because their names are almost identical. However, it’s important to recognize that they are different, but can work hand-in-hand.

Before we get into how to get a first-time home-buyer grant, let’s clear up the difference.

First-Time Home-Buyer Loans

First-time home-buyer loans were created to assist new buyers in entering the exciting world of homeownership. There are a few different types of first-time home-buyer loans with benefits ranging from 100% financing for rural properties to assistance for buyers with less-than-ideal credit scores. First-time home-buyer loans exist to help you borrow money to purchase your home.

Many financial institutions offer government-subsidized loans like FHA, USDA, and VA Mortgage Loans. Government-subsidized loans offer flexible solutions like low (or no) down payments. This can decrease the pressure of coming up with a typical mortgage down payment.

First-Time Home-Buyer Grants

A first-time home-buyer grant is awesome because - unlike a loan - you don’t have to pay it back. The funds are available through various programs and organizations. First-time home-buyer grants typically require that you submit an application and meet program-established prerequisites to receive assistance.

Many help cover your closing costs or can go toward a down payment. This is especially helpful because closing costs and down payments can be several thousand dollars, depending on the purchase price of your home. Below, you’ll learn more about how to find grant programs in your area and see if you qualify.

Both first-time homebuyer benefits exist to help you buy a home, but their functions are different. When used together, they can help make your dream of homeownership a reality! Check out your options and take advantage of the benefits that you can to get the most bang for your buck.

Understanding First-Time Home-Buyer Grants

As you learned above, first-time home buying programs come in all shapes and sizes. Now, let’s get into the specifics of how to get a first-time home-buyer grant.

Who Qualifies

Eligibility for grants is frequently income-based. Some programs offer cash in conjunction with a course that teaches you about smart home buying. Your job can also open you up to different available programs. For example, special programs are offered to teachers, public service workers, and members of the military.

Credit Requirements

Your credit score is used frequently in the home buying process. You can get ahead by getting your credit score into good shape. But, don’t count yourself out if your credit score isn’t fantastic. Many first-time home buying programs are designed to help those with lower credit scores get a home. Requirements vary by loan type and each specific grant program’s rules.

Who To Ask

The availability of grants can vary by location. It’s a great idea to do some research to discern what options might be available to you. These resources are a great place to start your investigation:

  • The U.S. Department of Housing and Urban Development offers a Homeownership Assistance Search Tool to help you find local programs. Simply select your location and you’ll find information tailored to homebuyers in your area.
  • Ask your real estate agent and your local housing authority office. Sometimes, they are aware of programs that are more niche.
  • Mortgage loan officers are familiar with programs in the states where they work. Reach out to your mortgage loan officer to help you navigate the process. Our local mortgage loan officers have experience with the home buying process in the communities that we serve.

Getting Prepped

When you apply for a first-time home buying grant, you’ll normally need to share details like:

  • Your credit history
  • How many people are in your household
  • Your income & work history
  • Where you plan to purchase a home

Getting your financial documents organized now enables you to compile the information that you will need later to complete applications. It can help you get your applications submitted in a timely, efficient manner and reduce any delays.

Ready To Get Started?

Many first-time homebuyers enter the process with equal parts of nervousness and excitement. Remember that your first-time home-buyer status can actually be a benefit instead of a disadvantage. This is the time to ask questions and do some research! It could potentially save you thousands of dollars in the long-run.

Happy home buying!

Learn More

For a limited time, get no PMI* in addition to low rates and local service with as little as 3% down for your home loan. Learn more here.

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Frequently Asked Questions

  • How am I eligible for membership at Listerhill if I don't live near a branch?

    You can become eligible for membership at Listerhill anywhere in Alabama if you join the Alabama Consumer Council or the Athens State Alumni Association. In Tennessee, you can also become eligible for membership if you join the Athens State Alumni Association. This membership is initiated at no cost to you and doesn't require any setup on your part outside of the normal application process to become a member of Listerhill.

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  • The Great Giveback Official Rules

    1. Eligibility: No purchase or obligation necessary to participate and win. All participants must be 19 years of age or older at time of contest participation. Employees of Listerhill Credit Union are not eligible to register for the contest.

    2. How To Enter the Contest: All Listerhill members who have consumer loans in good standing, (subject to limitations below) are automatically entered. Anyone who takes out a new loan with Listerhill Credit Union, or refinances a loan from another lender with Listerhill Credit Union (subject to limitations below) will automatically be entered to win. Limit of one entry per loan.

    NO PURCHASE NECESSARY: To enter the contest without a loan, send a self-addressed, stamped envelope to: Listerhill Credit Union, P.O. Box 566, Sheffield, AL 35660, Attn: Great Giveback Contest Entry. Limit one entry per person. Written entries must be received no later than July 3, 2021.

    Listerhill Credit Union will not be responsible for incomplete, lost, late, misdirected or illegible entries or for failure to receive entries. All entries become property of Listerhill Credit Union and none will be returned. Any questions regarding the number of entries submitted shall be determined by Listerhill Credit Union in its sole discretion, and Listerhill Credit Union reserves the right to disqualify any entries by persons determined to be tampering with, violating, or abusing any aspect of the contest.

    3. Contest Entry Requirements: In the event the Credit Union, in its sole discretion, determines that any Entry contains content that does not comply with these Official Rules or does not otherwise comply with regulatory guidelines, Credit Union reserves the right to disqualify the entry.

    4. Determining the Winner: A Credit Union employee will select at random four (4) $500 winners (one per day July 12-15) and one Grand Prize Winner from all entries received on July 16, 2021. You do not have to be present to win.

    5. Prizes: $500 Cash Prize: the Credit Union will award four (4) members with $500 cash each. Grand Prize: The Credit Union will pay up to $25,000 toward your loan with Listerhill Credit Union, or combination of loans. No loan payments will be made to loans with any other lender. No cash equivalent provided, and the total prize amount may be less depending on the outstanding amount of loan balance(s) with Listerhill Credit Union. In no event will the prize awarded exceed the total amount of the winner’s outstanding balance of qualifying loans with Listerhill Credit Union. Federal, state and local taxes are the sole responsibility of the winner. IRS regulations require the Credit Union file a 1099 on behalf of the winner.

    A Credit Union employee will call the prize winners and the prize winners will be called up to five times during regular business hours at number provided on entry form and will leave no messages. Failure to reach winner during these calls may result in disqualification of winner, forfeiture of his or her interest in all prizes, and selection of a substitute winner drawn from the drum. Winner will be required to schedule a time, at least 48 hours in advance, to visit Listerhill Credit Union, located at 4790 2nd Street, Muscle Shoals AL, 35661 in person, during regular business hours within seven (7) days of being notified to claim prizes by providing proof of eligibility for prize won and completing and signing an affidavit of eligibility and a liability and publicity release. Failure of any Winner to timely contact the Credit Union, visit the above Credit Union office in person and sign and return any required affidavit and release, or to claim a prize or comply with any term or condition of these Official Rules, will result in drawing Winner's disqualification and the forfeiture of his or her interest in the prize. Winners may waive their right to receive prizes. Prizes are non-assignable and nontransferable. No substitutions allowed by winner.

    6. To be eligible to win, all loans must be in good standing (not more than 30 days past due at the time of drawing. Eligible loans are limited to auto loans (no indirect dealer loans), personal loans (no loans secured by real property, such as mortgages, 2nd mortgages, and Home Equity Lines of Credit) and recreation loans made to consumer borrowers (not business or commercial loans).

    6. Participation. By participating, entrants agree to be bound by these Official Rules and the decisions of the Contest. Except where prohibited, acceptance of any prize constitutes winner's consent to the publication of his or her name, biographical information and likeness in any media for any commercial or promotional purpose, without limitation the Internet, or further compensation. Prizes not won and claimed by eligible winners in accordance with these Official Rules will not be awarded and will remain the property of the Credit Union.

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