Some people out there cannot manage their housing costs. Unfortunately, many individuals can find it challenging to get housing. The United States Department of Housing and Urban Development (HUD) acknowledges that individuals have this problem. This is why they provide a wide range of different housing support options.
What Housing Support Options are Available?
Many different housing support options are out there. Specifically, some HUD support options include:
- Public Housing
- Housing Choice Voucher Program
- Good Neighbor Next Door (GNND) Program
- Housing Opportunities for Persons with AIDS (HOPWA)
- FHA Loans
- HUD Homes for Sale
The main aim of public housing is to offer decent and secure rental homes to qualifying families that are affordable. When individuals think about public housing, they typically think of apartment complexes. This form of housing support can actually show up in different types. For instance, it can come in the type of a single-family home. While this is a program from the HUD, local housing agencies (HAs) manage the program. This means that specific eligibility requirements vary, depending on the area. Local HAs will consider the following qualification requirements when defining whether an applicant is eligible or not:
- Citizenship Status
- Household Status
- Income Level
References are important to remember. Even if a person might meet all of the other requirements, references are a factor that can disqualify an individual, in the case that they do not check out. Local HAs use references to better understand whether or not a person will be a good neighbor and a good tenant. To start the application process for this support option, you should contact your local HA. If you are finding it hard to get in touch with them, then you can contact your local HUD Field Office.
Housing Choice Voucher Program
Another housing support option is the Housing Choice Voucher Program, or Section 8. This is an assistance program that can offer housing vouchers to qualifying applicants. The vouchers can be used to cover a part of housing costs in the private housing market. Since the housing is in the private market, recipients have the chance to select where to stay as long as the landlord accepts vouchers as a type of payment. The homes also need to meet regulations that the local Public Housing Authority (PHA) sets. Even if it is a HUD program, PHAs are agencies that are in charge of the management and administration of the program. Similar to public housing, the specific eligibility requirements will differ based on the area you live in. PHAs consider factors like:
- Citizenship Status
- Household Status
- Income Level
- Criminal Background
- Eviction History
To start the application process, you will need to contact your local PHA. You can also get in touch with your local HUD Field Office if you need more help.
Good Neighbor Next Door (GNND) Program
It can be a challenge for individuals to purchase a home because of how expensive it can be. This is why the GNND program might be a good option to consider. The GNND program can offer a 50% discount on a home’s listing. Individuals that have a qualifying job in one of the following positions can gain from this housing support option:
- Emergency Medical Technicians (EMTs)
- Officers in the Law Enforcement
- Teachers (from pre-k up to 12th grade)
Individuals that are in eligible job positions will also need to stay in the home for at least 36 months as their primary home. Additionally, these properties need to be in certain revitalization locations that are available for sale, which are exclusively available through the GNND program. If you are interested in gaining from these homes, you will need to look for a home that you want.
Housing Opportunities for Persons with AIDS (HOPWA)
While this is not a program that directly helps people, it can still offer housing relief. This support option offers grants to sources that can offer housing support, social services, and many more. Some sources that might get these grants are local communities, non-profit organizations, state governments, etc.
One part of the HUD is the Federal Housing Administration (FHA). This government entity offers insurance for loans that lenders distribute to borrowers. By ensuring these loans, the FHA can decrease the financial risk that lenders might go through. That is because the FHA serves as a form of protection against financial losses. It can offer protection through paying a claim to the lender for any remaining primary balance of the loan if the borrower defaults. Borrowers can gain from these loans because they offer reduced down payment requirements and credit score requirements than some standard home loans. There are more than just conventional FHA mortgages–some other forms of FHA mortgages include the following:
- 203(k) Improvement Loans: This home loan does come with extra funds. The additional funds can be used on housing repairs and improvements to the home.
- Energy Efficient Mortgages: This home loan also comes with additional funds. The extra funds can be used towards making the property more energy efficient.
- Home Equity Conversion Mortgages (HECMs): This is a type of reverse mortgage. Since it is a reverse mortgage, it is only meant to help people that are the age of 62 or older. Individuals that can receive this mortgage can turn their home equity into cash while keeping their home’s title.
- Section 245(a) Loans: The mortgage of this home loan option begins with a reduced monthly payment but it will get higher over time. That is why this is a suitable option for homebuyers that expect their income level to increase.
HUD Homes for Sale
HUD has some available listings at a reduced rate. The reason that these homes are at a discounted price than the standard market price is that they are from the foreclosure of an FHA loan. You can find available HUD home listings to look through at the HUD Home store. It is a great resource to find more information on the home buying process for these homes. The home buying process can vary from the standard home buying process. This is because only brokers that the government registers can sell these properties.
The Final Verdict
When individuals need some housing relief, they could turn to HUD support options. There is a wide range of different support options out there that can assist individuals with rental units, or even purchasing a home. This is why it is important to know what is available. There might be more housing support than you think!