If you’re a first-time homebuyer wondering if there are programs available to help with closing costs, the short answer is yes there are. But at Liberty Star Mortgage in Fulshear, Texas, we want to make sure you know the full picture before committing to one of these programs.

Can Grant Programs Help with Closing Costs?

Yes, several first-time homebuyer assistance programs can help cover closing costs, prepaid items, or even down payment requirements. These grants and assistance programs are designed to make homeownership more accessible, especially for buyers who may not have the funds saved upfront.

But here’s what many buyers don’t realize.

What Most People Don’t Know

When you use a down payment or closing cost assistance program:

• The program sets your interest rate
  You won’t have the flexibility to shop for the lowest available rate. The program will assign a rate—often higher than market rates—to offset the risk they take on by offering assistance.
• You must complete a required homebuyer education course
  This online course is a common requirement and ensures you’re prepared for the responsibilities of homeownership. It’s helpful, but it adds time to the process.
• There may be additional fees involved
  Assistance programs often come with added lender or program fees, which can affect your overall loan cost.

These aren’t deal-breakers, but they’re important to factor in when deciding whether a grant program is the right choice for you.

Is a Grant Program Right for You?

Grant programs can be a smart option if you’re short on funds and need help getting into your first home, but they aren’t always the most cost-effective solution long-term. Depending on your financial situation, there might be other strategies we can use to structure your loan that make more sense for your goals.

If you’re a first-time homebuyer and curious about using a grant to help with closing costs, let’s talk.