The economic recession which hit the nation, further aggrieved home buyers, as the boom period had undoubtedly created a bubble in the real estate sector. Post the crash, many people found it extremely tough to buy a new house, as financial assistance was hard to come by. To ease this situation, the United States Government came up with some federal grant programs targeted at home buyers, especially the first-time buyers. The basic process of purchasing a home is simple, and people tend to follow it as if it's a convention. Foremost, the buyer shortlists on a couple of properties that he is willing to buy. Then he approaches the mortgage lender who initiates the loan. After the check on the buyer's credit history, the underwriting process for the shortlisted properties is initiated. The underwriter points out the property that has a better future equity-rise projection. The buyer then pays the closing costs and undertakes the down payment, upon which the mortgage is approved and the property is sold. Federal grants are broadly referred to as federal housing grant programs, and are provided by the central government through the state or city governments to its citizens. The Department of Housing and Urban Development (HUD) is the main administrative body for these programs. First time home buyers can easily avail such financial aid, as such funds are not meant to be repaid. The government aims at eliminating such costs so that home buyers do not have to worry about down payments and closing costs. In some cases, additional funds that can be used for the first installment, are also provided. Some of the important programs have been elaborated here; take a look and apply through the department's website.

• Grants for First Time Home Buyers: This assistance is basically provided to those people who do not qualify for some or the other recognized mortgage loan. The usual amount that is approved is about 10% of the total property value. There are, however, some or the other qualifying requirements and requisites for this aid.
• American Dream Grant: This program is also known as the American Dream Down-payment Initiative (ADDI). Initiated in the year 2003, it is aimed at taking off the down-payment costs, and was authenticated by an enactment of the same name. The initiative was aimed at providing home buyers with either 6% of the purchase price or USD 10,000, whichever is higher.
• Additional Home Grant Programs: Community Development Block Grants (CDBG), Emergency Shelter Grants (ESG), and Housing Opportunities for Persons with AIDS (HOPWA), are some of the additional programs that provide aid to people upon the fulfillment of some prerequisites. More information on these programs can be found by visiting the HUD website.
• 203(b) Mortgage Insurance: Mortgage repayment is an important issue for most home buying. Such individuals are provided a mortgage insurance policy by the HUD, which secures the repayment of the loan. The mortgage must be obtained from a private lending institution.

Visit the website of the HUD or your state department for further details on eligibility and application procedures.