Is A Free Government Grant Or A Private Lender Better?
Tricky question, indeed. There is a “Free Grants Community” but I’d suggest that you read all the fine print. In 2015 The Wall Street Journal and other respected sources reported that home ownership in the U.S. had hit a 48-year low. Thus young people have had a hard time buying their first home. Things have improved in the real estate market since 2015 but the young people are still concerned. Economists fear it could mean incomes are not keeping pace with the increase in home prices. Those same young people are still recovering from the collapse in home values and may simply need assurance. Perhaps they are not aware of the deals out there for new home buyers, other than risky government grants, such as private lenders, etc.
As we know, the Government does love to encourage home ownership. They make plenty of promises. Some can be good but most you really do have to be careful, as they also foreclose on many of those same homes. The Housing and Urban Development offers HEAP to both lower utility bills for low income families and repair homes; however, they make money too and will foreclose if anything happens to you. Again, read every word of the contract. In fact there’s a new program created by Congress to help specifically with issues like home repair. The HERO Home Improvement Program sucked one reported veteran into it and he’s left with tax bills that might leave him now with the possibility of foreclosure. He was told that he did not have to qualify based on income and didn’t have to put any money down. Often Contractors did substandard work and charged outrageous prices, adding up more and more, charged to the Government. Frankly, it was predatory lending. That lending was added to his taxes leaving him in worse shape than before. Not a new scam at all.
In my opinion, it’s always best to look for a credible Money Lender that you can trust if your home is in poor repair. Fix it up to live in it, or sell it for a great profit. The Private Money Lender is on your team and wants you to succeed as much as you do, so it makes more sense. Keep the reigns in your own hands and always read your contracts!