Housing can be a major expense for the average American.
What Housing Opportunities are Available Thanks to HUD much so that even those that can handle it find that other aspects of their life have been impacted.
Thankfully, the federal government created assistance programs to ease these costs for those in a financial pinch.
Among others, the US Department of Housing and Urban Development offers a variety of housing assistance opportunities, each with its own benefits.
The HUD Housing Assistance Options and How To Benefit From Them
One of the main reasons people don’t seek assistance is that they’re not even aware of the options available to them.
This article will go into detail on some housing assistance opportunities the HUD provides.
Among those options, you’ll find:
Each of these options serves Americans in need but in a slightly different manner.
This, however, doesn’t mean that you won’t have a choice, as you may be eligible for more than one HUD program.
Housing Choice Voucher Program
Oftentimes, people refer to this program as Section 8.
The program’s users receive vouchers that they can use to cover the cost of housing.
These vouchers can’t be used on any type of home.
You’ll have to find the home on the private market yourself.
Another thing to note is that the property owner must first agree to accept the voucher as a form of payment before proceeding.
The program is managed by a Public Housing Authority despite the fact that it’s funded by the federal government.
The PHA is also where you’ll submit the application as well as find out more about the program itself.
In order to provide assistance to those in need, the PHA will look at a series of different requirements.
- Household status
- Income level
- Criminal/eviction history
- Citizenship status
This support program was created with the purpose of providing housing that’s affordable.
Much like Section 8, Public Housing falls under the control of local Housing Agencies, although the criteria will vary based on location.
Despite this, you can still expect the local HA to look into your references, family status, income, and citizenship status.
If you find yourself interested in the program, you can submit your application at a local HA office.
HUD Homes for Sale
Most commonly, the HUD lists foreclosed homes on its listing site.
One thing you must remember is that the condition of a foreclosed home can depend on a number of factors.
The foreclosed homes listed on the Home Store were obtained by the department and came from a Federal Housing Administration loan.
If you’re interested in checking these properties out, you can do so at the HUD Home Store website.
Even if you do manage to find one that you like though, you’ll first have to contact a HUD-approved broker to begin the purchasing process.
The Federal Housing Administration falls under the HUD.
Through an FHA loan, the lender can significantly reduce the risk they’re exposed to when they let people borrow money.
That’s because if the borrower can’t keep up with the monthly payments, the FHA pays the remaining amount back to the lender.
One of the other benefits of this opportunity is the fact that it allows for both lower down payments and credit score.
The loans provided by the FHA are:
Section 245(a) loans
This loan offers the option of lower monthly payments at the start, which will increase gradually over time.
Because of this, it’s a great option for anyone who’s expecting to grow their income as time goes by.
Energy Efficient Mortgages
Due to a home’s construction and internal installations, some are more energy-efficient compared to others.
This loan option is meant for those that are looking to increase their home’s energy efficiency and it comes with extra funds that are meant to cover the costs of this process.
203(k) Improvement loans
Some homes may come in worse condition than others, depending on how the previous owners maintained them.
This loan helps buyers handle some of the costs of the repairs that may be necessary on the property.
The funds provided by the 203(k) can be applied to the cost of the repairs, renovations, and other fixes on the property.
Home Equity Conversion Mortgages
The HECM loan allows homeowners at or above the age of 62 to use their home as collateral when borrowing money.
The total amount of money a person can borrow through this program depends on a number of factors.
This includes their age, current interest rates, and the value of their home.
Good Neighbor Next Door
The GNND program is a bit different from previously mentioned programs as it only provides assistance to those working in one of the qualifying professions.
The professions included in the program are:
- Pre-k to 12th-grade teachers
- Emergency Medical Technicians
- Law enforcement officers
Through this program, qualifying individuals can receive a 50% discount on an eligible property of their choice.
However, this does include a set of requirements, one of which is making the designated property their residence for the next 3 years.
Additionally, the property in question has to be in a revitalization area.
However, even though there are some rules, it can provide a hefty discount which can make it easier to handle the cost of getting a home.
With housing support, there’s always an assistance option to look out for.
There are lots of different ways to get help paying for a place to live.
These can exist at different levels, so it’s important for you to do research specifically for your area.
Knowing what’s out there is the key to changing your household’s life for the better.
No matter what way you choose, it’s good to know that there are lots of options out there to help you find a place to live.