Grant is meant to bail you out of monetary crisis or to fulfill any need. Grants are usually offered by the Government, NGOs or private organizations. They are usually given to needy people but each year the competition is getting stiff for acquiring the grants. The gap between what is needed and what is available is getting broader every year. Therefore in order to get a share of the grant you have to be very on your guard.

State Grants

Home seekers with low income are provided assistance through state grants which are patronized by the Department of Housing and Urban Development. These grants are very targeted and provided to backward and low income areas. These grants are provided at the state level and then reach the consumer by a trickle down effect through local governments or municipalities.  However if you want to be living an area which is considered low income you have every chance of qualifying for this grant.

Regional Grants

There are many small grants offered by the local government or other private organizations for home building assistance. For example USDA provides grants in rural areas. It is always advisable to research what type of grants is available to you from which channels in your locality.

Registration and Other Formalities

The HUD grants program requires you to be registered with a Date Universal Numbers System(DUNS) number, obtainable from “grants.gov”, and registered with Central Control Registration (CCR).

DUNS is a unique nine character identification number while CCR is the database of the registered grant seeking parties for use of the federal government. It keeps the track record of these parties for qualification and correspondence.

Note Down Payment and Closing Costs

When purchasing your home for the first time it is likely that you forget to pay the closing cost on your mortgage. The closing cost goes into the account of the mortgage lenders for the amount of time they spent in doing the necessary paper work and on settlement grant terms and conditions. The closing costs can amount to about three percent of the total mortgage value. Remember that this money is in addition to the down payment. You should be aware of the down payment and arrange your budget accordingly. Mostly these grants are approved if you are found to have knowledge of personal finance and savings earned from the program.

Ignorance is a Sin

It is very important that you understand the benefits of the grant you are looking for. Taking a personal finance class can help in this regard and also chances of your qualification for the said grant can increase. You should be vigilant in reading newspapers or watching or listening to electronic media for the availability of the grants. You can also go online to search for these grant opportunities.