To buy a home is probably the biggest financial undertaking of your life. It’s no wonder, then, that some prospective homebuyers feel a little panicked about their investment.
But there are plenty of ways to help defray some of the costs of purchasing a home, from no-money-down home loans that help you keep more money in your pocket up front to grant programs that help reduce your closing costs.
In fact, as we discussed with Kelly Hughes from Wyoming Community Bank in the video below, there’s a grant program available right now that gives qualified applicants $5,000 to help pay for closing costs, the downpayment, or a mixture thereof.
As Kelly explains in the video, this grant program is available through the Federal Home Loan Bank, which is one of Wyoming Community Bank’s affiliate partners.
The grant is based on family size and income, so as long as you don’t exceed the income restrictions for your family size, you could end up with $5,000!
This isn’t a no-strings-attached situation, but as far as grants go, there are very few strings attached.
You have to own your home for at least five years, or if you sell the home before that five-year period is over, you simply have to report part of the grant money as income on your tax return.
For example, if you sell your home in year four, you’d need to report the remaining $1,000 of grant money. If you sell in year three, you’d need to report $2,000, and so on.
This is an excellent program that can open the door to homeownership for many people, particularly folks that can’t meet the debt-to-income ratio that’s required for Rural Development loans.
Instead, you could use this grant money to make the 3.5% downpayment that’s required for an FHA loan. And since FHA allows a higher debt-to-income ratio and lower credit scores to qualify, it’s a great route for individuals and families to get into a home of their very own.
Have a look at the complete video above for more details, or call Kelly Hughes at 307-857-9000. You can also get a loan application by stopping by Wyoming Community Bank at 1700 N Federal Blvd in Riverton or by visiting their website.