When low-income families wish to buy a new home, they often have a difficult time qualifying for home ownership. These families may not be aware of the government programs that may help them move from renter to owner.
Below are the top five programs for low-income citizens. More information is available from the local offices of Housing and Urban Development (HUD) or the U.S. Department of Agriculture (USDA).
1. HUD Home Ownership Voucher Assistance
HUD’s Public Housing Agency (PHA) helps families receiving Section 8 Housing Choice Voucher program move from renter to ownership status. If the family meets certain criteria, the amount that would have been paid by HUD for rent will be given to the family for ownership expenses.
2. Section 248 of the National Housing Act
These mortgages are for those who are members of a Native American tribe and wish to buy housing that sits on a reservation. The mortgage must be obtained through a normal Federal Housing Administration lender, including banks, savings, and loan institutions or a mortgage company. Up to 97 percent of the home or mobile home can be financed through this program.
3. HUD Section 32: Public Housing Home Ownership
This program offers public housing units for sale to low-income households, letting them buy Utah properties and others across the nation. This program was added to the U.S. Housing Act of 1937 by the Quality Housing and Work Responsibility Act of 1998. This program lets HUD sell public housing units for sale, with preference given to the tenants of the housing unit. The local HUD office will have more information on Section 32.
4. HUD Section 184 Loan Guarantees for Indian Housing
This program provides loan guarantees for families, housing authorities, and tribes of the American Indian nations for housing on tribal lands. This program was established by the Housing and Community Development Act of 1992. The loan guarantees are used to build, acquire, or refinance the single-family housing on trust land or that located in an Indian or Alaskan Indian area.
5. USDA Section 502 Direct Housing Loans
This program is administered by the U.S. Department of Agriculture and provides direct loans for very low or low-income families. The family must not be living in adequate housing but be able to afford mortgage payments, including insurance and taxes. Payment subsidy is available. The applicants must be unable to secure a loan elsewhere, but have a reasonable credit history.
These government programs are wonderful ways to buy a home if you are struggling. Do a little research, and you may be surprised what options you have for buying a home.
Guest Post written by Anica. A recent college graduate from University of San Francisco, Anica Oaks is breaking her way into freelance writing. She has already done articles for a variety of industries, ranging from technology to beauty to health. She loves dogs, the ocean, and anything outdoor-related. You can connect with her here.
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