What are Mortgage Grants?
As a homeowner, you may go through difficult times caused by loss of income due to a variety of reasons. When this happens, it will become difficult for you to meet your monthly mortgage obligations. However, there are home loan modification mitigations available to help the homeowners prevent the loss of their homes through a foreclosure. These programs may reduce the principal or interest or suspend the mortgage payments all together. On the other hand, a mortgage grant is, in essence, ‘free money’ made available to the homeowner to offset mortgage payments. These mortgage grants are more elusive when compared to home loan modification options.
There are a variety of mortgage grants available for homeowners to consider, including:
- Veterans Affairs Housing Grants – this grant is only open to homeowners currently in the service or veterans who retired from the service due to injuries incurred while at work. Offering up to US$77,307 per grant, these funds can be used to modify a home, buy a new home or offset mortgage principal balances.
- Keep Your Home California – this grant is specifically designed for unemployed homeowners in the low to moderate income communities who receive unemployment benefits from the state. Beneficiaries of this grant can get up to US$36,000 annually to buffer their mortgage payments.
- State Housing Initiative Partnership (SHIP) – this government-funded program is open to low and moderate income communities, and was created to make home ownership easier and more affordable. These funds can be used to pay off mortgage loan deposits or clear outstanding mortgage loan balances.
There are several other grants and low interest loans provided by different government agencies and NGOs spread across the country. Before considering consulting a home loan modification expert, visit your local Housing and Development Office to get more information.