Purpose of a Grant

• A government issued grant is not a benefit or an entitlement, but a form of financial aid or assistance from a federal agency. The person receiving the grant can use it towards a public purpose or financial support authorized by the law. The primary reason why you should apply for a government grant when buying a home is that you would technically receive free money. Generally, anyone who fits the required criteria of a grant program can receive aid.
  
  

Income Requirements

• Your income is the main determining factor when applying for a government grant, as the grants are income sensitive and the requirements vary depending upon the number of dependents in your household. Dependents are members of your family or people that you are taking care of that have no income of their own. The lower your income per dependent, the higher your chances of qualifying for a government grant to purchase a house. If your income is greater than the maximum amount listed by HUD, you may not qualify for a grant. These figures can vary from year to year and are available on the HUD website.
  
  

Home Ownership

• You are automatically ineligible for a grant if you have owned a home in the years prior to your application. Additionally, if you had any interest of investments in housing in the last three years, you will not qualify for a home purchasing grant. A prior foreclosure will also disqualify you from being issued a grant as well.
  
  

Other Factors for Disqualification

• You are ineligible from receiving a grant if you have unpaid child support, a bankruptcy discharge that is less than 24 months old, and/or are currently in default on a government loan or tax liens. These disqualifications are immediate and are not subject to change any time soon. You might want to hire a debt counseling agency before you apply for a grant. They can investigate your current credit history to ensure you meet the grant's financial requirements before you apply. In some cases, they can also act as the middleman to help you get the government grant.