There’s nothing more comforting than owning a safe, secure space one can call home. But with the ongoing hike in real-estate prices, affordable housing has remained a dream for many. Fortunately, the government has introduced certain initiatives to facilitate comfortable housing at affordable prices that are suited to one’s requirements. For example, the Department of Housing and Urban Development (HUD) offers federal aid to those looking for homes but have low incomes.
About the Department of Housing and Urban Development
The HUD provides financial assistance to individuals with low incomes who are looking for affordable housing facilities. To this end, it organizes and supports programs that aim to provide comfortable homes at reasonable prices. Its main goal is to “create strong, sustainable, inclusive communities and quality affordable homes for all.” To fulfill this mission, it runs several programs and initiatives.
Objectives of the HUD
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Ensuring affordable housing for all
One of the most important objectives of the HUD is to work towards eliminating homelessness and provide housing at affordable rates for people of all communities and demographics. So, it teams up with local governments, businesses, and non-profit organizations to oversee the construction of such homes.
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Planning and improving cities
The role of the HUD extends to supporting projects involved in renewing and transforming cities. Some of its city-planning roles include establishing and renovating parks, fixing roads, and remodeling other public spaces. Through such initiatives, it helps communities interact with each other and reside together in harmony.
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Contributing to a healthier environment
Often, real-estate development ends up causing environmental degradation. The HUD takes initiatives to ensure that the environment isn’t adversely affected by such development. It views housing from a long-term perspective, promoting sustainable practices and facilitating a healthier environment for future generations.
How to apply for a HUD program?
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Find a local housing agency
The HUD receives federal funding, but Public Housing Agencies (PHAs) operate it locally. These PHAs differ by area. So, when applying for a HUD program, one should visit the official HUD website and find a list of local PHAs. The website provides their contact information and other relevant details.
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Browse the available HUD programs
The HUD has a wide range of housing and community welfare programs, each with a distinct objective. Conducting thorough research on each of these programs is essential to understand which of them one qualifies for.
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Compare income level with the program’s income limit
The next step is to compare one’s current income level with the income limit of the chosen HUD program. This income limit may vary based on the area one resides in and the number of family members in the household.
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Keep the required documents handy
Applying for a HUD program means one would have to provide in-depth information, so it’s best to be prepared with all the necessary documents beforehand to fill out the application.
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Fill out the application form
To apply for a suitable HUD program, one has to fill out a physical or online application form. So, one can either print and mail or fax the form or schedule an appointment with the HA office and fill it out in person.
Examples of HUD programs
HOME investment partnerships program
With this program, the HUD offers annual funds to underprivileged communities to improve housing facilities in certain areas. The beneficiaries may use the funds for any housing or home improvement purposes, such as paying their rent and rehabilitating their homes.
Section 202 – Supportive housing for the elderly
Through this program, seniors with low incomes or no stable source of income receive subsidized housing. The program facilitates direct loans as well as capital advances from the federal government to provide seniors with independent housing options but with all the required support and facilities.
Section 8
Here, families with low income levels receive affordable, safe, and comfortable housing. The programs included in this initiative consider different types of families and their unique housing requirements and work towards fulfilling them. Essentially, the beneficiaries are offered vouchers, which can be redeemed to secure any approved private housing facility.
FHA mortgage and loan insurance
This section of the HUD is governed by the Federal Housing Administration, or FHA, and focuses on providing mortgage loans to those seeking affordable housing. The first step to securing an FHA loan is to approach an FHA-approved lender. When the loan is approved, the FHA backs it to reduce the lender’s risk involved in the process. But there are certain specific criteria a borrower must meet to be eligible for an FHA loan. For example, their debt-to-income ratio should be less than 43%.
Public housing
Like Section 8, HUD’s public housing also offers vouchers to beneficiaries, but these have a one-time validity. So, the beneficiaries lose their vouchers once they move to another accommodation. Local public housing authorities maintain every rental unit offered under this initiative.
