Military and Hero Home Buyer Programs

HomeStrong's Heroes Program

HomeStrong is an organization meant to help improve the lives of those who have served their country in the military. They acquire vacant properties and then work to rehabilitate them — after the property is fit for living, they sell or donate the property to active or inactive veterans. Veterans seeking to purchase these available homes may also qualify for financial assistance, like grants for the down payment or closing costs.

Applicants must work with a HomeStrong counselor to determine if they qualify for the program. If accepted into the program, veterans must attend financial management seminars and continue with their counseling. The home purchased must be the buyer’s primary homestead — the buyer must also qualify for a mortgage loan from any lender.

Summary:

  • Must be National Guard, military veteran, active duty or reserve.
  • Veterans must attend financial management seminars and one-on-one counseling.
  • Veteran must qualify for a mortgage loan.
  • Veteran must occupy purchased house as their primary homestead.

GMHC - Minneapolis Houses for Heroes

The Greater Metropolitan Housing Corporation offers National Guard members (even those in the reserves) a huge break towards buying a home. Those deployed now in the war on terror and even those who have returned from deployment can get as much as $20,000 toward the purchase of a home in Minneapolis.

The disbursed loan can be used towards the down payment for the home, closings costs or improvements on the home. The assistance is a no-interest, deferred loan with absolutely no monthly payments. The loan is forgiven 20% per year for five years until the loan is completely forgiven — this only applies if the homeowner lives in the property for the five years after the loan is closed.  

Summary:

  • Military members of the National guard, both active and reserved qualify.
  • Up to $20,000 in assistance towards homeownership costs.
  • Loan is forgiven after five years of residence.

HUD Good Neighbor Next Door Program

This program is meant to assist law enforcement officers, firefighters and other emergency personnel, as well as K-12 teachers with homeownership. This program is meant to encourage community revitalization through homeownership and these important members of the community are this program’s focus.

HUD awards qualified homebuyers with substantial incentives, like 50% of the sale price of selected single-family homes. Upon accepting this incentive, the homebuyers commit to live at the property for 36 months as their homesteaded residence. HUD also requires that home buyers sign a second mortgage and note — no interest or payments are necessary for the second mortgage as long as the 36 month occupancy requirement is met.

Summary:

  • Must be an emergency personnel or a K-12 teacher to qualify.
  • Up to 50% off sale price for qualified homes.
  • Purchased property must be homesteaded by the buyers for at least 36 months.

PenFed Foundation Dream Makers Grant

The Dream Makers program is offering grants to military veterans to help them better afford homeownership. The grants through the program are meant for a down payment for a home or closing costs.

In order to qualify, applicants must be a military veteran, active duty or reserve, or National Guard. Applicants must also be first-time homebuyers (not owned a home in at least three years and not displaced by divorce). The gross annual income of the applying family cannot be more than 80% of the area median income as determined by the U.S. Department of Housing and Urban Development.

Applicants must have a letter of pre-approval or mortgage pre-qualification from their lender. All mortgage types and lenders are accepted.

The grant amount is determined by the borrower’s dollar contribution to their mortgage in earnest deposit and cash brought to the closing. The grant is a 2 to 1 match of the contribution, with a max grant of $5,000. The borrower needs to contribute at least $500 to qualify. However, the approval of future grants is dependent on available funding.

Summary:

  • Must be National Guard, military veteran, active duty or reserve.
  • Must be first-time homebuyer.
  • Gross income cannot exceed more than 80% of area median income.
  • All lenders and mortgages are accepted.

United States Department of Veteran Affairs - Specially Adapted Housing Grant

This Specially Adapted Housing Grant is designed to assist Veterans with permanent and total service-connected disabilities. This helps Veterans with disabilities to live independently and in less restrictive living environments.

These grants are meant to be put towards the construction of a specially modified property, to renovate an existing property to become suitable for the disabled Veteran, or to be put towards the unpaid mortgage balance of an already adapted home purchased without a VA grant.

The grant amount is set by law — the maximum grant for the Specially Adapted Housing program in 2014 was $70,465. No one individual may use the grant benefit more than three times up to the max amount allowable.

Summary:

  • Grants only apply to Vets with permanent and total service-connected disabilities.
  • Grants designed to help Veterans have less restrictive living environment.
  • Maximum grant in 2014 was $70,465.

Buying your first home can be overwhelming. Let us help!  We are committed to finding you any grant monies or assistance programs available to you.  Our buyer agent services are FREE!  Please contact us for more information.  We have assisted hundreds of first time home buyers and look forward to the opportunity to assist you!

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