Mortgage Grants & Schemes

Mortgage Grants and Schemes


As you probably know, mortgage approval is tied with many things. Credit score, financial history, the amount of debt and your career. If it happens to have difficulty in getting approved, you can still do it.

There are specific mortgage programs and grants available for those who are having some issues with their mortgages. They come from the state, local agencies and from some nonprofit organizations that managed to acquire some federal funds. They are genererally competitive, and they can help homeowners pay their loan installments when they should and prevent foreclosure. They can be done through the US Department of Housing and Urban Development (HUD) which gives assistance to those in need.


How do the mortgage grants and schemes work?


Basically, a mortgage grant is a monetary award which you don’t need to repay. This differentiates them from loans. When you are given the funds, you have to use them for the intended purpose, and because of this you will have to provide updates to show how the funds were used.

Mortgage grants come through applications, which are difficult and in-depth. If it happens that you missed some information or gave false data, your application can easily be denied. Regardless, there are millions of dollars in grant funds available, so you still have a fighting chance. There are certain qualifications that you need to meet, like being a minority or having a low income.

Schemes work similar to grants, but they also involve special programs that allow houses to be affordable, such as a discount on a house or easier mortgage payment options.

Both of them are offered usually by the state and also offered locally. Bellow you will see a few grants and schemes, but you might find more if you research.


Mortgage Foreclosure Prevention Program

It is offered by the Twin Cities Habitat of Humanity, and this program allows homeownes who quallify to avoid foreclosure through monetary assistance. The agency gives counselling and referrals at no charge for those who couldn’t meet their mortgage payments, HOA fees ,or property taxes. The program offers around 35.000$ in funds for the eligible and so far, they have assisted over 6.000 families.

Preventing foreclosure is essential. An event like this can destroy a person’s financial health for many years and will take the person’s ability to make more purchases under credit



Housing Grants for Single Mothers

Being a single mother is very difficult and sadly, there are too many than everybody hopes. Not only that, but being a single mother is difficult in a financial way as well and they often find themselves unable to pay towards their mortgages and are in need of assistance. While these grants do not exist on a national level, they are available locally. These programs usually fall under the first-time buyers category, low-income category, and rural-area category. Usually single mothers fall in one of those categories which allow them to have different options available when receiving help in paying for a home.

In particular, Community Block Development Grants are available for single mothers, and other dermographics that have difficulty with their mortgages. These grants are awarded on a year basis to local and state bodies.

American Dream Down Payment for Minorities

This program gives the low-income families and minorities some assistance when they buy their first home. It gives the families the initial up-front costs of buying a home from repairs up to down payments and closing costs.

The grant however is limited to 6% of the total purchase price, or 10.000$, whichever of these two is greater. To be eligible, this has to be your first house and you cannot exceed over 80% of the median income in your community. This program also can be used only to buy a 1-4 family home, a condominium, a manufactured home or a cooperative housing.

Starter Home Scheme for Young First-Time Buyers


In the UK, the Starter Home scheme is a government program which gives a discount on over 200.000 new constructions to first-time homebuyers under the age of 40. They receive a discount of at least 20% of the market price, but the discount can’t be over 450.000£ in London and over 250.000£ outside of London.

This can save a lot of money. The loan is reduced, thus the interest payments are reduced which can save tens of thousands of dollars.

Help to Buy Scheme for First-Time Buyers

Also in the UK, the Help to Buy equity loan scheme is available thorugh the Homes and Communities Agency for First Time Buyers and is offered by Nationwide. This is a specialized home equity loan that offers first-time homebuyers the needed funds for a down payment that acts like a deposit. With a 5% deposit, you can receive an additional 20%(or 40% in Greater London) funds available to be borrowed thorugh the Help to Buy equity program that can be put towards the purchase price of a home. You will also be eligible for a Nationwide mortgage of up to 75%(or 55% in Greater London) of the home’s purchase price.

These home equity loans don’t have any interest for 5 years. Once that period is depleted, you will have to pay a monthly interest charge along with your normal mortgage payments. If you sell the home, you will have to pay the surplus balance on the equity loan