If you’re on the hunt for housing support opportunities, the United States Department of Housing and Urban Development (HUD) has plenty to offer! The first day of each month is perhaps one of the most dreaded days for millions of Americans struggling with housing expenses. It’s tiring scraping together just enough money to make rent each month, only to have barely anything left over for other necessities. There are assistance programs that can help provide you with a rent rate that you can afford. Meanwhile, other programs can support you in becoming a homeowner. Whatever your needs are, there is likely a program that can help you!

Different HUD Housing Support Programs to Consider

When it comes to deciding on the best support opportunity for you and your family, you first need to know what’s available. The HUD funds various programs that help with housing. Each program is committed to helping in a different way. Depending on your particular needs, one of these support programs may be able to help:

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

Public Housing

When most people think of public housing, they imagine apartment buildings in crowded cities. However, public housing is available in all different areas. Furthermore, it is not limited to just apartments. Other types of properties, such as single family homes, are also used for public housing. The goal of this program is to provide both individuals and families in need with an affordable place to live. The cost of rent is fixed in the recipient’s favor, depending on how much they can handle. Eligibility requirements vary depending on where an applicant lives. However, these four categories are taken into consideration:

• Household Status
• References / Rental History
• Citizenship Status
• Income Level

Although this housing assistance program is federally funded, local housing agencies (HAs) handle both applicants and tenants. Your local HA is the best place to determine the specific qualifications in your area.

Housing Choice Voucher Program (HCV)

The Housing Choice Voucher Program, commonly recognized as Section 8, offers housing assistance to families in need. The assistance is delivered through housing vouchers that get credited towards the recipient’s rent. In some areas, qualifying recipients can even use their vouchers to be able to purchase a home! Not anyone can benefit from this program. Section 8 focuses on helping low-income individuals and families get access to affordable housing. With that, you can expect that the following factors are considered when determining who is eligible to benefit:

• Household Status
• Rental History
• Criminal Record
• Citizenship Status
• Income Level

If you’re interested in applying for Section 8, the best course of action is to go through your local Public Housing Authority (PHA). That’s because PHAs are responsible for the program’s operations. Recipients also work closely with their PHA. Recipients aren’t limited to public housing when it comes to Section 8. Instead, they are in charge of finding their own rental property that they want to live in. There are some obstacles when it comes to searching through properties on the private market. First, the PHA needs to determine that the property is sufficient through an inspection. Second, the landlord of the property needs to agree to accept vouchers as part of the recipient’s rental payment. Once everything is good to go, the PHA takes care of applying the voucher each month. Meanwhile, the tenant is responsible for paying whatever rent is left!

FHA Loans

FHA loans are beneficial for more reasons than one. These loans are more widely available because of protections that the Federal Housing Administration (FHA) offers qualifying lenders. When comparing FHA loans to traditional loan programs, recipients can take advantage of perks such as:

• Lower credit score conditions
• Lower down payment conditions

The protections come in the form of insurance. Lenders can file a claim with the FHA when borrowers default on their loan. The claim can cover the remaining balance of the borrower’s debt for the lender. Therefore, FHA insured lenders are less likely to suffer losses in such events.

There are many different types of FHA loans that you can come across. Four examples include:

• 203(k) Improvement Loans: This loan can be used towards reconstructing a property. Some homebuyers want to make changes to the property that they buy. Some properties may even require upgrades and repairs to make it safe to live in. In these circumstances, a homebuyer may be able to qualify for this type of FHA insured loan.
• Energy Efficient Mortgages: This type of loan is intended for making upgrades and repairs that increase the energy efficiency of a home.
• Section 245(a) Loans: Individuals that qualify for this FHA insured loan can benefit from reasonable monthly payments at first. As time goes on, the monthly payments gradually increase. Individuals that expect their income to increase over the years can benefit from this type of loan.
• Home Equity Conversion Mortgages (HECMs): Seniors that are at least 62 years of age can get this FHA loan. HECMs are often referred to as a reverse mortgage. Individuals that need cash on hand can use these loans to dip into their home equity. The benefit is being able to convert equity without giving up the title of the home.

Good Neighbor Next Door (GNND) Program

Individuals that work in a qualifying field can benefit from home buying discounts with the GNND program. Recipients can get a 50% discount off of the sale price of certain homes! These properties have to be within revitalization areas in order to get the discount. Individuals that are employed as any of the following professions can qualify for GNND:

• Police Officers
• Emergency Medical Technicians (EMTs)
• Teachers of Pre-K up to 12th Grade
• Firefighters

In addition to working in one of the above fields, the recipient needs to live in the home that they buy for a certain period of time. The GNND program requires that its recipients primarily live in the home for no less than 36 months. This is a great option for certain individuals that need a unique pathway to becoming a homeowner!

Overall

When it comes to housing support, the HUD is your one stop shop for relief. There are numerous programs funded by this federal department that help in a variety of circumstances. You can consider the following federal assistance opportunities:

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

Maybe your goal is just to get back on your feet. In that case, public housing or Section 8 may be best for you! However, if your goal is to achieve a big milestone, such as becoming a homeowner, FHA loans could open that door for you. Whatever situation you are in, it’s important to understand your options!