Available HUD Assistance Opportunities

Many individuals and households cannot keep up with their housing costs. It is a good rule of thumb to spend at most 30% of your gross income each month on housing costs. That way your expenses can be considered affordable, according to the definition from the United States Department of Housing and Urban Development (HUD). However, that can be hard for many households to do. Fortunately, the HUD has assistance opportunities available that can help. The HUD offers both housing assistance opportunities to achieve affordable housing and help people purchase/renovate their homes. This is why you need to look in-depth at what is available.

Understanding Common HUD Assistance Opportunities: What Are They?

Some common HUD assistance opportunities are as follows:

Housing Choice Voucher Program

One of the most common housing assistance opportunities is the Housing Choice Voucher Program, or Section 8. This program offers housing vouchers to eligible recipients. Recipients can use these vouchers to pay a part of their housing costs. Recipients also have the option of choosing where to live. They can only choose properties that accept vouchers as a form of payment. These properties also need to meet local PHA requirements which include passing a home inspection to make sure it is decent and safe.

This assistance opportunity is a program that the HUD offers, but local public housing authorities (PHAs) administer the program. PHAs get HUD funding, but PHAs are the agencies that are responsible for the program’s management. It is important to keep in mind that specific eligibility criteria can differ based on the area. There are generally four criteria that are important for PHAs to take into consideration. These four criteria include:

  • Citizenship Status
  • Income Level
  • Household Status
  • Eviction/Criminal History

If you want to know more information or start on your application, then you should contact your local PHA. People that require more assistance can get in touch with their local HUD Field Office.

Public Housing

Another common HUD assistance opportunity is public housing. The main goal of this opportunity is to offer safe and sanitary rental homes to eligible families at an affordable rate. These homes are not just apartments; they could be single-family homes and other types. This might be a HUD program, but local housing agencies (HAs) are responsible for its management. Similar to the HCV program, specific eligibility requirements will differ, but they can define who is eligible from the following requirements:

  • Citizenship Status
  • Income Level
  • Family Status
  • References

References do not necessarily define whether a person is eligible or not, but it is still an important factor. This is because even though people could meet all three eligibility conditions, they still might not qualify for this program because of their references. References are supposed to assist the local HA in finding out if recipients will be good renters and neighbors. If you want to start your application, then you should contact your local HA. For people who need more help, they can get in touch with their HUD Field Office.

FHA Loans

The Federal Housing Administration (FHA) is within the HUD, where they insure loans that lenders offer. Through the insurance of these loans, the FHA decreases the financial risk that lenders could experience. This is because the FHA will protect lenders against financial losses by paying a claim to the lender for the unpaid principal loan balance if a person defaults on their mortgage. Some of the advantages of these loans are that they offer lower down payment requirements and accept applicants that have a lower credit score, as opposed to conventional loans. Other than a standard mortgage, there are many forms of FHA mortgages that people are unaware of. Some of these loans include:

  • Home Equity Conversion Mortgage (HECM): HECM is a form of reverse mortgage established for people that are at least 62 years old. Those who receive this type of mortgage can transform their home equity into cash while keeping the title of the home.
  • 203(k) Improvement Loan: This home loan has additional funds. The additional funds can be used towards renovations and repair expenses for the properties.
  • Energy Efficient Mortgage: This is another home loan that comes with extra funds. The extra money can go towards improving homes and making them more energy efficient.
  • Section 245(a) Loan: When applicants assume that their income level will go up, they may find many advantages from this home loan option. The mortgage begins at a reduced payment per month but increases with time.

HUD Properties for Sale

Residential homes that the HUD owns are available to sell at a reduced rate. These properties belong to the HUD because they result from a foreclosure on a mortgage that the FHA insured. The HUD will provide the foreclosed properties for sale as a way to try and recover the financial loss that comes with the foreclosure. If you are considering these discounted homes, then you should look through the HUD Home Store. There is a particular process when you purchase these types of properties. Only brokers that the government registers can sell these properties. You will find that the HUD Home Store is a great place to look for homes and learn more about the home buying process for these properties.

Housing Opportunities for Persons with AIDS (HOPWA)

Different people have different problems to deal with. That is why the government designed HOPWA. The program can assist eligible individuals that have HIV/AIDS receive housing support. This program can help through grants to several resources like nonprofit organizations, local communities, states, and more. There are two grants that sources can gain from which are:

  • Formula Grants
  • Competitive Grants

The funds that sources get can assist people through housing opportunities, social services, and more. While eligible people and their households cannot directly gain from the HOPWA, they can benefit from HOPWA-funded opportunities in their area.

Good Neighbor Next Door (GNND) Program

Another HUD opportunity for home buying on this list is the GNND program. This opportunity provides 50% off on the listing price of a home for qualifying recipients. To gain from this opportunity, recipients need to have an eligible job position. An eligible job position includes one of the following:

  • Emergency Medical Technicians (EMTs)
  • Teachers (from pre-K to 12th grade)
  • Firefighters
  • Law Enforcement Officers

Other than needing a qualifying job position, recipients need to commit to staying on the property for a minimum of 36 months as the property is their primary residence. Additionally, these homes need to be located in revitalization areas that are exclusively on sale for this program. If you are considering this opportunity, then you should look for listings in your state. Once you find a home that you want, then you need to follow the instructions to offer your interest. If the home has more than one submission of interest, then the offer will go to an interested individual that the program chose through a random lottery. If an individual is chosen, the HUD needs them to sign a second mortgage and note for the discount home amount, or “silent second.” There are no payments or interest on this silent second, as long as the person commits the 36-month requirement of staying on the property.

Conclusion

Not everyone has the same problems which is why it is best for you to look for a specific housing assistance opportunity that fits your situation. Thankfully, many housing assistance opportunities are available from the United States Department of Housing and Urban Development (HUD). There might be more opportunities than you think that could help out your housing situation!

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