How the Grant Works

In a earlier post, I had a question about, whether or not the grant on the house was a good deal. Let me try to explain how this grant from the city of Topeka, funded by HUD works. Eleven (11) years ago, when I got my grant, I received a total of approximately $30,000 in rehabilitation grants. That money was then forgiven over the course of the next ten (10) years, at the rate of 8% per year. After 10-years the remaining amount remains as a lien on the house (in my case just under $6,000). That is to be sold, when the house is sold or the homeowner moves. In some cases the remaining amount may be completely forgiven. Until the house actually closes, I will assume that I will have to pay the city back.
There is a difference in these numbers for new comers to the grant and that I received. That being that now it is 50-50, rather then 80-20.

For those that were wondering, I hope that explains it. So yes, it was (and is) a very good deal. So if you subtract that from the $21,500 offer that I received on the house, that leaves about $15,500. Then subtract the $11,700 that I owe on the siding (with interest), that amount becomes $3,800. Then then there is the $2,500 Realtor fees, real estate taxes and the closing costs.
After which, it all boils down to an estimated $50 after the sale of the house. It could be more, but I pretty much broke even. I will just have to wait and see, what the number is in the end.


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