Home Grants for Senior Citizens
The recent financial devastation resulting from the national recession and natural disasters has affected every American, especially America’s senior citizens. The Senior Job Bank’s statistics show that many of these seniors are looking for resources and grants to provide financial assistance during hard times because they depend heavily on their relatives and charities to provide the financial support necessary in maintaining their homes. In order to aid these seniors, many community action partnership agencies and non-profit organizations offer local, state and federal program information on various ways to apply for loans and grants that assist with mortgages, rent, refinancing and housing vouchers.
Home Buyer Training Classes
State community action partnership agencies offer monthly first-time home buyer education training for senior citizens. Depending on the program, a specific amount of credit hours from a home buyer training class may be required to be eligible for second mortgage financing or various down payment assistance programs. Home buyers, including seniors, without a mortgage for at least three years may be considered as first-time home buyers.
Section 8 Housing
The Department of Housing and Urban Development (HUD) is the nation’s housing agency committed to increasing home ownership, particularly among minorities. It also creates affordable housing opportunities for low-income Americans by supporting the homeless, the elderly, people with disabilities and people living with AIDS. In 2005, HUD received $20 million in grants to provide funding for housing projects for the elderly in 38 states. Many local rental programs have open waiting lists for new Section 8 voucher applicants. Seniors can contact their local HUD office and their state community action partnership agency to apply online or by mail.
Housing Resource Expos
Many states host housing resource expos as a way to inform low-income individuals and seniors about housing programs and grants offered by FEMA, HUD and state community action partnership agencies. These expos assist and advise individuals and families who participate in a rental assistance program and housing voucher program, while providing information about other available assistance for transitioning into permanent housing solutions. Residents receiving disaster assistance in homes or trailers are encouraged to attend one of these informational events.
Affordable Home Modification Programs to Prevent Foreclosures
Senior citizen borrowers who have experienced documented hardships and are behind on their mortgage loans may qualify for a reduced mortgage loan by entering into a trial modification for a reduced payment amount. According to Safeguard Properties, Federal Housing Administration (FHA) lenders have been encouraged to contact borrowers who are delinquent, in default or in foreclosure status. If the mortgage was delinquent prior to January 2009 and the lender has not contacted you, please call your lender or loan provider. Eligibility requirements for the FHA Home Affordable Modification Program are in the HUD Mortgagee Letter (ML) 2009-23 called HUD ML 2009-23 Making Home Affordable Program: FHA’s Home Affordable Modification Loss Mitigation Option. The Fannie Mae and Freddie Mac Conventional Loans Home Affordable Modification Program guidelines are in Treasury’s Supplemental Directive 09-04.
American Recovery Act Tax Credit
According to HUD, participants in the FHA first-time home buyer program may qualify for an $8,000 tax credit to purchase a home from qualifying banks. These borrowers are allowed to immediately apply the tax credit toward their down payment. For more information, contact your local FHA resource center. The credit applies to home sales that close after April 8, 2008 and before December 1, 2009. This credit will be applied when filing your 2009 taxes in this year.
Housing Counselors
Many state community action partnership agencies have certified housing counselors who provide free counseling to the elderly who have rental needs and who are in the process of transitional living. In addition, these counselors have applications for home repair programs and for furniture, appliances and other housing-related needs. These housing counselors will also assist seniors with preparing housing paperwork.
Mortgage Rescue Programs
Some states have received funds to help individuals and families who are in jeopardy of foreclosure. These homeowners may be eligible to refinance mortgage loans. Homeowners must be able to verify income, be employed for a minimum of two years, must have a debt to income ratio of less than 50 percent and must be in an adjustable-rate or another sub-prime loan. Conventional Fannie Mae homeowners who are in danger of foreclosure can find help at the United States Treasury's office.
Natural Disaster Assistance
Residents affected by natural disasters may qualify for financing or grants for their homes. Some states may offer The Road Home Elevation Incentive that provides grants for site-built homes and for mobile homes. In addition, some states may offer the Homeowners for the Hazard Mitigation Grant Program (HMGP). This award is separate from the Road Home Program. Qualified applicants may be eligible to receive a maximum grant of $20,000 to complete repair or construction of their homes, if they meet income and other guidelines.
Senior Reverse Mortgages Program
Many mortgage companies are offering senior citizens, ages 62 and above, the ability to use the equity for home repair and home rebuilding. Homeowners must prove home ownership and that no payment is due from the homeowner unless the home is unoccupied.
Home and Rental Vouchers
Due to the intervention of non-profit organizations, along with local, state and federal agencies, the opportunities for home ownership have increased. Many Section 8 voucher holders can purchase a home with their vouchers. In addition, the United Way Individual Development Account (IDA) Program is designed to help low-income families save to acquire a home. Program participants saving up to $2,000 will receive a match of up to $8,000 for a maximum total of $10,000 for a home. In addition, some states may offer bond assistance that will pay the down payment and/or closing costs on a home. Contact your local finance authority or community agency for more information on low interest down payment and closing costs assistance funds. Make sure to check with your state community action agency for support services for affordable housing and rental assistance vouchers. Assistance with furniture, food and psychiatric counseling may also be available for qualifying senior citizens.
Home Revitalization
Local affiliates of national nonprofit organizations have restored and revitalized more than 100,000 homes for low income families at no cost to the homeowner. The home rehabilitation programs target the populations most affected by natural disasters and low-income persons in urban communities.
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