Many people across the country have a hard time handling necessary living expenses like the cost of housing. Even those that can handle this expense may still find themselves cost-burdened. Luckily, the federal government understands that people are having a hard time. That is why the United States Department of Housing and Urban Development (HUD) has various housing assistance options designed for those in need.

What HUD Housing Assistance Options are Available?

A lot of people may not realize that there are housing assistance options available from HUD for a variety of different housing needs. Some of these options include:

• Good Neighbor Next Door (GNND) Program
• Housing Choice Voucher Program
• Public Housing
• FHA Loans
• HUD Homes for Sale
• Housing Opportunities for Persons with AIDS (HOPWA)

Good Neighbor Next Door (GNND) Program

Not every program helps the same group of people in the same way. The GNND program is a great example of that. This program is only designed to help those that work in a qualifying profession. This includes those that are:

• Teachers (from pre-kindergarten to 12th grade)
• Firefighters
• Emergency Medical Technicians (EMTs)
• Enforcement officers of the law

Individuals that work in one of these eligible professions can benefit from this program. Through the GNND program, recipients can get a 50% discount on a home’s listing price. However, other rules come along with this program. For example, recipients must live on the property as their primary residence for a minimum of three years (36 months). Besides that, the properties that people can purchase must be located in qualifying revitalization areas to receive the discount. Only certain properties are available through this program!

Housing Choice Voucher Program

One of the most popular housing programs on this list is the Housing Choice Voucher program. It also goes by the name of Section 8. Through this program, qualifying recipients can get housing vouchers. These vouchers go towards the cost of housing in the private market. While it generally is designed to help with rental costs, some areas allow vouchers to go towards buying a property. Recipients will need to find the home they wish to move into in the private market. However, the properties must accept the vouchers as a type of payment as well as meet other criteria like a housing inspection. Even though this is a federal program, it is managed locally by Public Housing Authorities (PHAs). These PHAs have the responsibility of managing and administering the program. They are also where applicants can submit their applications and ask any questions they may have. This program is designed to help those in need so, to qualify, local PHAs will look at eligibility criteria like:

• Income Status
• Citizenship Status
• Family Status
• Criminal and Eviction History

Public Housing

Another popular housing assistance option is public housing. This housing support program is designed to provide housing to recipients at a rate they can afford. Oftentimes, when people picture public housing in their minds, they think of apartments. However, public housing can come in a variety of types of housing. For example, public housing could be in the form of a single-family home. Similarly to the Section 8 program, this program is managed at the local level by a housing agency (HA). Since it varies by locality, the specific eligibility criteria will be different depending on where you live. However, individuals can expect the local PHA to consider the following criteria when determining whether or not a person qualifies:

• References
• Income Status
• Family Status
• Citizenship Status

You may see references and think, “what is this? A job interview?” However, references provide good feedback for the HA to use when considering whether or not an applicant will be a good tenant. This is important because even if someone qualifies for the other eligibility requirements, they could still be denied if their references don’t check out. If you want to get started, you will need to reach out to your local HA.

FHA Loans

The Federal Housing Administration (FHA) is an agency of the HUD. This agency will insure loans that eligible lenders will offer to borrowers. Through insuring these loans, the agency reduces the risk that lenders have to deal with. It’s a layer of protection against losses so lenders can expand who they provide loans to. The protection focuses on paying a claim for any principal balance that remains in scenarios where the borrower defaults on their loan. Some of the biggest benefits of this loan are the fact that borrowers could qualify with:

• Lower down payment requirements compared to some conventional home loans
• Lower credit score requirements compared to some conventional home loans

Some common types of FHA loans include the following:

• Home Equity Conversion Mortgages (HECMs): Many people know these loans as reverse mortgages. The fact that it is a reverse mortgage means only seniors that are at least 62 years old can qualify for this type of loan. The benefit to these loans is that people can tap into their home equity to get cash, all while keeping the title!
• Section 245(a) Loans: This type of loan is an excellent option for those that expect to have their incomes grow. This loan starts with a low monthly payment which increases over time.
• 203(k) Improvement Loans: Not every home is available in the same condition. Some properties need a little fixing up. This type of loan accounts for that! This loan provides additional funds that can go towards the cost of improving the property through repairs, renovations, etc.
• Energy-Efficient Mortgages: Some homes are more energy efficient than others. Those that want to improve their home’s energy efficiency, they can get this type of loan. This loan comes along with additional funds that cover the cost of making the home more energy efficient.

HUD Homes for Sale

There are plenty of different properties to consider when looking to buy a house. One type of property, in particular, is foreclosed homes. However, not every foreclosed home is the same. Some foreclosures are exclusively offered by the HUD. The reason that these homes are available through HUD is that the home that went into foreclosure was from an FHA loan. To view these listings specifically, you can check out the HUD Home Store. However, if there is a home that catches your eye then you will need to reach out to a government-registered broker!

Housing Opportunities for Persons with AIDS (HOPWA)

Last but not least on this list of HUD housing assistance options is HOPWA. This program doesn’t benefit a community directly. Instead, it provides grants to sources within a community that can provide housing support (as well as other helpful services).

Bottom Line

When it comes to housing support, there are a variety of options to consider. There are assistance opportunities at the local, state, and federal levels. However, this article focuses on some of the federal assistance options that may be able to help. These assistance options are available thanks to HUD and include the following:

• Good Neighbor Next Door (GNND) Program
• Housing Choice Voucher Program
• Public Housing
• FHA Loans
• HUD Homes for Sale
• Housing Opportunities for Persons with AIDS (HOPWA)

Regardless of the housing assistance option, it’s important to know that there is more help out there than you may realize. You just need to know some options to consider!