Affording housing expenses like rent can be a struggle for many households! For that reason, the United States Department of Housing and Urban Development (HUD) has created assistance programs that help with this cost. On the other hand, many Americans have a dream of buying their first home! However, the process can be expensive and overwhelming. Fortunately, the HUD also has assistance options for this. But what programs are out there and what do they help with?

Housing Support Options Available Through the HUD

We already mentioned two situations that the HUD can assist families with. The following are a few of the housing assistance programs available through the HUD:

• FHA Loans
• HUD Homes for Sale
• Public Housing
• Good Neighbor Next Door (GNND) Program
• Housing Choice Voucher Program (Section 8)

FHA Loans

These mortgages are federally insured loans that are recognized for being more accessible to homebuyers, especially first time buyers. FHA insured lenders are able to offer borrowers advantages that they may not get with traditional lenders like lower credit score and down payment requirements.

The FHA is a department within the HUD. These lenders are able to accept more applicants because the insurance provided by the FHA is like a safety net. If a borrower stops making payments on their loan, the FHA will pay the remaining principal balance. Borrowers can benefit when the lender feels like there is less risk involved in a transaction!

Four popular kinds of FHA loans include:

• 203(k) Improvement Loans
• Energy-Efficient Mortgages
• Home Equity Conversion Mortgages (HECMs)
• Section 245(a) Loans

Each of these loans aim to serve a different purpose. That is why it is important to see all of the different options out there so you can figure out the best ones for your goals. For example, if you don’t plan on making any energy improvements, then an energy-efficient mortgage is likely not going to be the best fit for you.

HUD Homes for Sale

Many people don’t know that the traditional home buying process isn’t the only way to become a homeowner. Homes that have faced foreclosure are a different option for potential homebuyers. The HUD is awarded possession of homes that were bought with an FHA Loan but then were foreclosed upon. Keep in mind that you’ll need to get in touch with a government-registered broker to purchase one of these homes. However, anyone can view these listings easily online! They list the homes that they have for sale on the HUD Home Store.

Public Housing

Although this is a federal program, local housing agencies (HAs) manage the program. Despite what most people think about public housing, there are more housing options aside from apartments. As an example, single-family homes are offered for public housing. This assistance option operates with the purpose of providing safe housing to families at an affordable rate for them. With all of that in mind, the exact criteria required to qualify is dependent on where you live. However, four factors are very likely to be considered when applying for public housing which include status of U.S. citizenship, income level, household status, and references/rental history.

Good Neighbor Next Door (GNND) Program

The GNND program stands out from the other options on this list because they help a very specific group of people. The GNND program offers qualifying recipients up to a 50% discount on certain homes. In order to qualify for this program, you’ll need to work in one of the following fields:

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

You’ll want to be aware that there are some required conditions that you have to meet before you can get your discount. This includes:

• Having the property be in certain revitalization areas
• Living in the home as their main residence for at least three years

Due to conditions above like having the property stay within certain revitalization areas, not every home will be eligible for this discount. Instead, only qualifying homes will be offered.

Housing Choice Voucher Program (Section 8)

Last but certainly not least we have the Housing Choice Voucher Program or Section 8. Much like Public Housing, the goal of Section 8 is to provide safe housing to people in need. However, they do this a bit differently. Recipients of Section 8 are responsible for finding their own rental in the private market. They can only begin their search once they are granted vouchers that go towards the cost of rent. Section 8 doesn’t limit their assistance to only renters. Potential homebuyers may be able to benefit from vouchers that can go towards purchasing a property. However, it is important to note that this is only an option in certain areas.

Local Public Housing Authorities (PHAs) are responsible for operating the program. A condition be aware of is that the property that you find must pass an inspection done by a PHA. In addition to that, the landlord of the property must accept vouchers as a form of payment. In order to be eligible for this housing option, your local PHA will take into account the following criteria:

• Status of U.S. Citizenship
• Household Status
• Criminal History
• Eviction History
• Income Level

These PHAs are where you can handle the application process and get more information if you need. So for questions, comments, and concerns, you will want to go to your nearest one!

Conclusion

In this article we went over the various housing assistance options that the United States Department of Housing and Urban Development (HUD) provides. If you are in need of housing assistance, you can consider the following:

• FHA Loans
• HUD Homes for Sale
• Public Housing
• Good Neighbor Next Door (GNND) Program
• Housing Choice Voucher Program (Section 8)

Each program offers support in a different area. In order to get the most out of any of these programs, you’ll need to understand what kind of help you need! With that being said, if you are in need of housing assistance, federal programs aren’t the only way you can get help! Within your community, you may be able to benefit from a variety of non-profit organizations or other community programs.