Government Grants for First Time Home Buyer Review

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First Time Home Buyer

All about Government Grant for First Time Home Buyer
A number of grant programs have been introduced for the first time home buyers by the U.S. Department of Housing and Urban Development (HUD) such as the Community Development Block Grants (CDBG) program, the American Dream Downpayment Initiative (ADDI) program, the Emergency Shelter Grants (ESG) program, the Housing Opportunities for Persons with AIDS (HOPWA) program and many more, to assist the individuals in purchasing their first home .

The American Dream Downpayment Initiative (ADDI) Program:

The American Dream Downpayment Initiative Program (ADDI) was initiated in the year 2003 to provide downpayment, closing costs and rehabilitation assistance to eligible individuals primarily the lower income and minority households in purchasing their first home. It works with the basic motive of revitalizing and stabilizing the communities.

The Emergency Shelter Grants (ESG) program:

The Emergency Shelter Grants program was introduced in 1986 to provide the primary shelter and other basic facilities. These grants are transferred to the eligible individuals through either local government agencies or private nonprofit organizations. It also facilitates short-term homeless prevention assistance to individuals who might in future loose their home due certain consequences such as eviction, foreclosure and so on.

Community Development Block Grant (CDBG) Program:

The Community Development Block Grant program was established in 1974 and funded through federal entitlement. These funds are used to benefit low and moderate income families, provide aid in the elimination of blight, and meet other urgent community needs.

These CDBG funds are used in three ways:

1.Capital bricks and mortal projects: Used for construction, Acquisition or rehabilitation of facilities and improvement of communities.

2.Public services: Majority of these funds, are combined with General fund dollars and are made available through the social service grant process.

3.Administrative costs: These funds pay for the costs in administrating the CDBG program.
Housing Opportunities for Persons with AIDS (HOPWA) Program:

HOPWA program was started in 1992 by the U.S. Department of Housing and Urban Development (HUD), to provide housing assistance and essential supportive services to low income individuals diagnosed with HIV/AIDS and their families. HOPWA funds are also used in enduring a wide range of services such as health care and mental health services, chemical dependency treatment, nutritional services, assistance with daily living and many more.

Many programs have been developed to assist the homebuyers but, each program has certain eligibility criterions, which are ought to be satisfied. Homebuyer grant programs are to make home ownership a reality for even low or moderate income families and to reduce the number of tenant-occupied properties in the city.
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