Government home grants are funds provided by a regional or local government to individuals in need of financial assistance for housing. These funds are gifts that do not require repayment. An application process must be pursued in order for any funds to be committed, and these documents can largely be found on the Internet. There are various types of government grants available that may help in obtaining a mortgage, making rental payments, and even with home repairs. As a result of government home grants, home ownership is likely to increase in low-income communities.
Homeowners and potential home buyers can obtain financial assistance for different types of housing, including single-family or multi-family homes. A new homeowner might be able to obtain assistance for a down payment or closing expenses, while an existing homeowner might need help financing repairs. Often, financial assistance will be accompanied with written information about maintaining a home and the importance of favorable credit.
Certain government home grants are designed with demographics in mind. For instance, there are grant programs for the elderly that help with reverse-equity mortgages to make housing more affordable. Disabled and low-income individuals may be able to obtain housing vouchers that can be directed towards rent or a public housing option.
During times of slow economic growth, a regional government might step up its efforts in distributing home grants in an attempt to stimulate growth and combat homelessness. This could be especially beneficial for a low-income resident whose home requires urgent repair. Government home grants may assist with internal and external repairs, such as replacing a leaking roof or keeping a heating or cooling system working properly.
Eligible recipients of government home grants must prove residency in the region where the money is being requested. Many government grants are equal opportunity, and not based on an individual's credit or earnings history. Unless a free government grant is designed for a particular group, such as women or minorities, anyone who meets a residence and age requirement is typically eligible without having to provide any collateral or co-signer, which would often be required to obtain a loan.
Although many government home grants are directed at individuals or groups of individuals, some are earmarked for entire communities. Funding may go towards creating affordable public housing in low-income cities, states, or provinces. This type of initiative might be supported with the distribution of housing vouchers and other grants to low-income families in the area.
