Federal Housing Assistance Programs
- The federal government provides housing assistance through the Department of Housing and Urban Development.Capitol Building image by dwight9592 from Fotolia.com
The U.S. Department of Housing and Urban Development offers programs to help individuals and families purchase a home. The Federal Housing Administration is a part of HUD. The FHA assists homebuyers by insuring home loans that are made through approved banks and other lending institutions, thereby decreasing risk for the lender so the consumer can negotiate advantageous financing terms. - FHA-insured mortgages make homeownership possible for those who can't come up with a large down payment.house image by hans slegers from Fotolia.com
The buyer who meets the standard FHA credit qualifications is eligible to borrow 95.5 percent of the value of the home being purchased. The maximum amount of an FHA-insured mortgage depends upon the location of the home. The highest limits are for metropolitan areas in locations such as Washington DC, San Francisco and Manhattan and can reach over $700,000 for a single-family residence. - HUD helps homebuyers afford the repairs needed on a "fixer-upper."repair image by astoria from Fotolia.com
The primary federal program for the rehabilitation and repair of single-family homes is the Section 203 (k) Program. This program facilitates the purchase of homes in need of rehabilitation or repairs by insuring mortgage loans through approved lenders that include the purchase price of the house plus the estimated rehabilitation costs. This resource can often be combined with programs offered through state and local government agencies. - Adjustable rate mortgages can be economical when interest rates are high.mortgage image by hans slegers from Fotolia.com
The 251 Program helps low-to-moderate income families purchase a home by guaranteeing adjustable rate mortgages (ARM). This program can be done in conjunction with Section 203 (b), 203 (k) and 234 (c) programs. - Energy efficiency improvements can be financed through an FHA program.Solar panels on roof image by kuhar from Fotolia.com
Similar to the Section 203 (k) Program, this mortgage program allows for the estimated costs for energy efficiency improvements to be bundled with the purchase price of the home. - HUD has special assistance for teachers, law enforcement, fire fighters and emergency medical technicians.teacher image by Twilight Dragon from Fotolia.com
Qualified law enforcement officers, fire fighters, emergency medical technicians and pre-kindergarten through 12th-grade teachers can receive a 50 percent discount from the list price of a home through the Good Neighbor Next Door Program. The home must be one that is listed for sale exclusively through the GNND Program and located in a “revitalization area” as defined by HUD. Listings are available by state on the HUD website. The buyer must agree to live in the house as his sole residence for 36 months. HUD requires that the purchaser sign a “silent second mortgage” for the amount discounted, however no payments are required provided the 36-month residency requirement is met. - HUD helps those who need help paying their mortgage.Letras hipoteca1 image by Nuka from Fotolia.com
This program is for first-time home buyers who need help meeting their monthly mortgage payments or other home ownership expenses. This program is administered through local Public Housing Agency (PHA) offices. Individual PHA offices can impose limits on the program. A list of participating PHA offices is available on the HUD website. There are often waiting lists for this program, however preference is given to residents of the community.
