Low-income families can obtain grants for homeownership.
Housing organizations that use federal funding to help meet the housing needs within their particular community must align their strategic goals with the mission statement and purpose of the Department of Housing and Urban Development (HUD). One of the goals of HUD is to improve the quality of life and economic vitality of the citizens within this nation. HUD is a federal agency that realizes that homeownership helps to strengthen the economic position for low-income families. Many organizations that work in the housing industry also carry out the same agenda as HUD. Low-income families who are in need of grant assistance for homeownership are almost guaranteed to receive the aid they need to acquire a home.
Low-Income Guidelines
Many housing agencies that offer grant support to low-income families primarily base the assistance off federal poverty guidelines. These guidelines are structured according to family unit size and income amounts for the particular size of the family to keep them out of poverty. Once income eligibility has been determined, grant seekers can go forward in the process of obtaining grant funding.
Dollar Housing
Low-income families have the option to acquire a home through the use of the Dollar Home Sale program offered by the government. The federal government takes foreclosed homes that they have brought and offers them to state governments for purchase of $1 after they have been on the market for six months and remain unsold. Families who qualify can receive the property through the aid of a state or community organization that sponsors the program. The homes that are available within this program doesn't cost the family a dollar to own. The family saves money by not paying closing costs and with a reduced mortgage expense. Also, the family must pay other expenses associated with owning a home such as down payment costs and taxes.
Sweat Equity
Another option for low-income families in obtaining grants for homes is through the use of sweat equity. Organizations make housing available for families who participate in the home building process for the unit that they will occupy. Sweat equity not only provides a home for low-income families, this type of plan also requires participants to help build homes with other families so they can benefit from this program as well.
Military Aid
Families in the military who are economically disadvantage do have government programs available to them for the use of housing. According to the Military Housing Assistance Fund (MFAH), only 2 percent of military families can afford to own their own homes. MFAH gives grant assistance to help military personnel with closing costs and other minor expenses for owning a home.
Property Disposition
HUD offers certain foreclosed properties that it has purchased to low-income families at a reduced amount. Low-income families who are eligible for this program could possibly finance a home that is discounted up to 30 percent off the listed price. Areas in need of revitalization within a community are the primary location for this type of grant-funded program.
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