First time home buyer grant programs.

Forgivable Grant programs to assist with closing cost and/or down payment.
Grants are money given through a Government/Municipality, public or private organization that allows the funds granted to be used in the new home purchase transaction. Many of these programs are created tobe an incentive for buyers to purchase a home in a targeted area. This is done to help improve the community and rejuvenate locations that need home owners. Often the structures of these grants are more like a second mortgage. They may provide the funds to be used as assistance for down payment and closing costs but they are attached as a lien to the property.

Forgivable Grants with a term

This grant maybe forgivable if the homeowner agrees to occupy the property as a primary residence for a set period of time. The terms tend to be anywhere between 5 to 30 years. Each grant may have its own unique set time period requiring occupancy.

Forgivable Grants with a residency requirement

In all likelihood the grant will require that the recipient(s) of the funds remain in the home while the term of the lien is in effect. If the property is no longer a primary residence during the grant's term repayment may be required.

Grants in second lien position

Although the grant may commonly be thought of as not a mortgage, in a pure sense of a mortgage, it may not have an interest rate or monthly payment. It is however, attached to the property in second lien position behind the first mortgage. It may need to be subordinated if an equity line or an additional 'second mortgage' was opened on the property until the grant attached to the property is released via its terms. Until released it will remain attached to the property.

Free and Clear Grants 

Although less common than a grant with a lien attachment, free and clear grants may be available in certain areas for certain properties. These grants are in essence a gift of the funds with no additional attachment to the property.