Unless you’ve been living under a rock, or you have a lot of money, you’ve probably noticed the impact this pandemic has had on our economy. Real estate prices are up, there’s a chip shortage that’s causing a scarcity in electronic devices, and most importantly businesses and jobs are closing down. When you factor all of that in, you’ll understand that a lot more people are struggling financially than before. Also, the need for federally-funded assistance programs is more important than ever.

Thankfully, there’s a website that the government created that helps Americans find these assistance programs. The website is called Benefits.gov. The gist of it is that the website provides information and links that lead to most (if not all) assistance programs provided by the government. You’ll find information on assistance programs that will help Americans with housing, education, childcare, healthcare, and more.

When it comes to these programs, eligibility is key. That means being qualified for these programs is what matters the most. If you’re not qualified, then applying for these programs is a total waste of time and energy. That’s why Benefits.gov has a neat trick up its sleeve. That trick is called Benefit Finder. Benefit Finder is basically a 10-to-30-minute survey. You answer a few simple questions about yourself, including occupation, family, residence status..etc. Then, the website will provide you with a list of all the programs you may qualify for. Each program’s page on Benefits.gov will give you links and contact information to the offices responsible for the program.

So, if you’re struggling financially to cover the basics in your life, be it housing or healthcare, or something else, you should definitely give the website a check. Considering the economy is the way we just described, there’s a rush for federal assistance. That means it’s a good idea to apply for stuff as soon as possible so you don’t have to wait too long to get your benefits.

American Federal Housing Assistance Programs

The American government creates housing programs that try to fit American needs of different kinds. Obviously, the housing market has been going bananas as of late. To summarize the housing market situation in a few words, let’s say the price you see today may not be the price you see tomorrow. That house will very likely be more expensive tomorrow. And, that increase in housing prices is not just limited to purchase prices. Even rent prices have been skyrocketing since the start of the pandemic.

That’s why when we said the government tries to meet different needs with its programs, we meant both renting, and buying houses. With that in mind, you need to be aware of 2 things: First, you need to know what kind of housing assistance program you’re looking for. Every program will come with different benefits. Second, you’ll need to know which programs you qualify for. Every program requires different qualifications. And, as we said before, you don’t want to be wasting your time and energy on applications for benefits you won’t be receiving due to ineligibility.

American Housing Rental Assistance

Renting a place is often seen as the ‘affordable’ option, as opposed to buying your own place. Logically, no one would choose to live in someone else’s house, paying rent every month, if they could afford to own the house. However, renting is not that ‘affordable’ anymore. If you take a look at the average rental prices in major cities, like Los Angeles and Seattle, you’ll notice that the average apartment to rent will set you back somewhere around $2,000. For the most desirable cities, like New York and San Francisco, you’re looking at $3,000 on average. And, again, that’s the average. Now, for folks who live on minimum wage, or have many financial responsibilities, that can be bad news. So, let’s take a look at some Federal rental assistance programs that could help with that situation.

Section 8 Housing/Housing Choice Vouchers

The Department of Housing and Urban Development (HUD) is to thank for this program. As the name suggests, this program is voucher-based. The voucher is used by eligible beneficiaries to help them pay their rental fees. To put it shortly, voucher holders will be expected to invest 30% of their income towards their rent. They can then use the vouchers to pay the rest of the rent. However, this program is not just for anyone. Section 8 aims to help low-income families specifically. That means that if your state doesn’t recognize your financial status as ‘low-income’, then you’d be wasting your time applying for this program.

Speaking Of Eligibility, Here Are A Few Things You Should Know:

• You can only apply for Section 8 if you’re 18 years old or above
• HUD created Section 8 to help US citizens and eligible immigrants. When it comes to immigrants, the status of their residency will be the main deciding factor when it comes to the benefits received
• If you plan on applying for Section 8, you should know that drug-related criminal records matter a lot. They will probably influence HUD’s decision on whether you should get Section 8 benefits or not.
• We mentioned earlier that Section 8 is meant for low-income families. “Low-income” in this case means folks that make less than 50% of their local city/state median. For example, the household income median in Arkansas is $47,597. That means Section 8 applicants in Arkansas must have a household income median of less than $23,798.5.

Another important thing to know about Section 8 is where to apply or ask for reliable information. Public Housing Authorities or PHA offices are the ones responsible for your Section 8 application. Also, different PHAs might have different qualification requirements, so make sure you ask your local one before applying. If you’re having a hard time finding your local PHA, here’s a map to help you out.

Public Housing

According to the Center on Budget and Policy Priorities, public housing “helps families afford housing and avoid homelessness or other kinds of housing instability. Some developments provide access to neighborhoods with well-resourced schools and more job opportunities, where it might otherwise be difficult for low-income families to rent homes. Public housing helps families save on housing and have more for other expenses like food, health-related services, child care, and transportation. Also, public housing can allow older adults and people with disabilities to remain in their home communities.”

Also, congress reports that “PHAs receive several streams of funding from HUD to help make up the difference between what tenants pay in rent and what it costs to maintain public housing. PHAs receive operating funds and capital funds through a formula allocation process; operating funds are used for management, administration, and the day-to-day costs of running a housing development, and capital funds are used for modernization needs (such as replacing a roof or heating and cooling system or reconfiguring units).”

Applicants for public housing can find apartments, houses, or townhouses that fit within the program’s benefits. Once again, PHAs are the best way to get the most reliable information on the program. However, it’s important to know that you can’t apply for public housing online or on the phone. To apply for public housing you must visit your local PHA in person and start the process.

American Housing Purchase Assistance

Remember when we talked about how the economy is basically grinding to a halt? Now, imagine all the young (and elderly) people who dream of buying their own homes. As you can imagine, prices of houses have now skyrocketed beyond many Americans’ budgets.

You Can Buy Houses Foreclosed By HUD

HUD is pretty smart when it comes to using all resources they have at hand. Among those resources are houses that were foreclosed from people who fail to pay off their FHA mortgage loans (which we will discuss later). Basically, HUD takes over these houses and turns around to sell them to other Americans. The neat part is that HUD is not looking to make a profit off these house sales. As a matter of fact, HUD can accept offers that are about 85-88% of a house’s value. You should look into the HUD Home Store and see what kind of houses they offer. However, there are quite a few things you should know about the purchase process of the “HUD Homes”:

• You don’t just pick a house, pay for it and get it. You’ll need to bid for it.
• You can’t actually place the bid yourself, you’ll need to find a HUD-licensed realtor.
• HUD helps you filter your options according to budget and area in their store
• Bidding works the same way it would in any other situation. If you bid too low for a nice house, someone will likely outbid you.
• HUD foreclosed these houses from people who failed to make their mortgage payments. That means there’s a chance previous house owners might’ve not spent much on maintaining these houses either.
• The Good Neighbor Next Door program can help teachers, police officers, firefighters, and emergency medical technicians get even better prices for these homes.

Government-Backed Loans

Although many banks and other lenders are offering loans and mortgages, the interest rates can be absolutely disastrous. However, thankfully, if you research well enough, you find yourself a really decent federally-funded mortgage. A lot of these government-backed loans will come with very low-interest rates. Much like with other housing assistance programs, it’s important to know whether you’re eligible or not. So, do your due diligence before taking any steps.

Federal Housing Administration (FHA) Loans

This is a pretty great one for first-time homebuyers. Basically, the government guarantees your loan when you’re applying for a mortgage from a private lender. Not only does that make your chances of getting pre-approved much higher, but also gives you better interest rates. People whose credit scores are 580 or above, may be eligible for loans up to 96.5% of the house’s value. That would leave them with only 3.5% to pay as a down payment. People whose credit scores are between 500 and 579 can receive mortgages up to 90% of the house’s value.

US Department of Agriculture (USDA) loans

This loan aims to help people who choose to live in rural areas. Obviously, it’s up to USDA to decide which areas qualify as “rural.” However, if eligible, applicants can receive loans to finance their homes with down payments as low as $0.

Veterans Affairs (VA) Loan

This loan program comes as a lifetime benefit for military service members and surviving spouses. Funds from this loan can go towards buying, building, repairing, retaining, or adapting a service member’s home. Much like FHA loans, the government will be your guarantor when applying for loans from private lenders. Veteran Affairs won’t ask for any down payment, and the interest rates they charge are very low.

Section 504 Home Repair program

Also known as the Single Family Housing Repair Loan, this program “provides loans to very-low-income homeowners to repair, improve or modernize their homes or grants to elderly very-low-income homeowners to remove health and safety hazards.”

Native American Direct Loan

This program aims to help native American veterans specifically. Eligible applicants who receive money through this type of loan can use it towards buying, building, or improving their homes. One caveat is Veteran Affairs requires that these houses be built on federal trust lands.