Paying for rent and utilities can be a burden for many people. However, this can be easier to manage when you have the right support. As a matter of fact, the U.S. Department of Housing and Urban Development (HUD) offers a wide range of assistance programs that might interest you. In this article, you will learn about the available opportunities that could help you with your tough situation.
HUD Housing Assistance Programs
If you do not know what assistance programs the HUD provides, you are not alone. Although it is so important to be aware of the available support options, many people have barely any idea about how they can get assistance from the federal government. In fact, the HUD offers several housing assistance programs, including:
- Public Housing
- FHA Loans
- Homes for Sale Through HUD
- Good Neighbor Next Door (GNND) Program
- Housing Choice Voucher (HCV) Program
- Housing Opportunities for Persons with AIDS (HOPWA)
Public Housing
On this list, a super common assistance option is public housing. It was created to provide eligible people with appropriate housing at reasonable prices. Although the HUD funds this program, it is run locally by Public Housing Authorities (PHAs). In other words, the program’s management and administration are the responsibility of these PHAs. Also, they are the main source of information when people have questions or concerns.
The particular eligibility requirements will vary depending on where you live. However, people can anticipate that the local PHA will take into account the following factors when deciding whether or not a person qualifies:
- Citizenship Status
- Income Status
- References
- Family Status
You might be confused when you read the word “references”. Simply, it refers to people who used to deal with you in your previous residence. The HA can get a good idea of whether or not an applicant would be a reliable tenant based on feedback from previous landlords and/or neighbors. So, if a reference of yours gives negative feedback about you, you might end up rejected, even if you meet the basic eligibility requirements. In order to start the application process, you will have to contact your local PHA.
FHA Loans
The HUD has a number of agencies including the Federal Housing Administration (FHA). This agency’s goal is to insure loans that borrowers get from eligible lenders. The agency lowers the risk that lenders may face by adding an additional layer of loss prevention so lenders can increase the range of borrowers they can lend to. In cases where the borrower fails to make payments for their loan, the protection concentrates on settling a claim for any remaining principal debt. This loan stands out from other types of loans since:
- The down payment requirements are less than some other traditional home loans.
- The credit score requirements are usually lower than other traditional home loans.
Different Types of FHA Loans
The following are a few examples of popular FHA loan types:
- Section 245(a) Loans: For people that anticipate seeing an increase in their income, this kind of loan is a great opportunity. The initial monthly payments on this loan are low but increase with time.
- Home Equity Conversion Mortgages (HECMs): These loans are frequently referred to as reverse mortgages. This means only seniors who are at least 62 years old can be approved for this type of loan. With these loans, borrowers can still maintain the title to their homes while accessing the equity to get cash.
- Energy-Efficient Mortgages: Some people might need to improve their home’s energy efficiency as it is not the same in all homes. This is the main purpose of this loan. It includes additional funding for the home’s energy-efficiency improvements.
- 203(k) Improvement Loans: Your house’s condition is most likely different from other houses in your neighborhood; that’s the norm. In fact, it is common to find properties that need some repairing and maintenance. If that’s the case, this loan might interest you. This loan offers extra money that can be used to pay for the cost of upgrading the property through repairs, renovations, etc.
Homes for Sale Through HUD
When you start house hunting, you will find that there are multiple options to consider. One of these options is foreclosed homes. In spite of that, not all homes in foreclosure are the same as some of them are available for sale through the HUD Home Store. If a home was originally financed by an FHA loan but went into foreclosure, the HUD offers it for sale. You can visit the HUD Home Store to see the available listings. However, you must contact a broker who is authorized by the government if there is a house that grabs your attention.
Good Neighbor Next Door (GNND) Program
In general, different programs help different groups of people in different ways. The Good Neighbor Next Door (GNND) program is no exception. This program is only intended to assist those who work in a profession that qualifies. These professions include:
- Firefighters
- Enforcement officers of the law
- Emergency Medical Technicians (EMTs)
- Teachers (from pre-kindergarten to 12th grade)
People who hold a job in one of these fields are eligible for this program. Recipients of the GNND program are eligible for a 50% reduction on the property’s listing price. However, this program also has other guidelines. For instance, recipients must spend at least three years living on the property as their primary residence (36 months). Additionally, to be eligible for the discount, the properties that people might buy must be located in designated revitalization areas. This program only offers a limited range of properties.
Housing Choice Voucher (HCV) Program
The Housing Choice Voucher program is one of the most popular HUD housing options on this list. You may recognize it by the name of Section 8. Eligible recipients of this program may get housing vouchers to help them pay for rent (or in some cases, to buy a house) in the private market. However, to be able to use these vouchers, recipients have to find a property that accepts the voucher and passes the HUD housing inspection.
Just like public housing, the HUD funds the program, but the PHAs run it locally. Since this program aims to assist people in need, local PHAs will consider eligibility requirements like:
- Income Level
- Family Size
- Citizenship Status
- Criminal and Eviction History
Housing Opportunities for Persons with AIDS (HOPWA)
HOPWA is not like other HUD programs. This program does not provide direct assistance to individuals and families. Rather, it provides funding to local organizations that can help eligible people that have HIV/AIDS with housing expenses and offer other relevant services.
Overall
If you are struggling with housing expenses, you can get help from many sources including federal housing programs. These programs are available through the HUD to eligible people. You can get assistance through one of the following programs:
- Public Housing
- FHA Loans
- Homes for Sale Through HUD
- Good Neighbor Next Door (GNND) Program
- Housing Choice Voucher (HCV) Program
- Housing Opportunities for Persons with AIDS (HOPWA)
With housing assistance programs, you can get some relief and feel less stressed out. You just need to look into your options and apply for those that suit your situation best.