You may have heard about the term “grant” before? We have written this article to help you understand the basics of how housing grant function. Keep reading to learn the definition, purpose, eligibility requirements, and application process for housing grants. This article will also provide all the information you need to get started on acquiring a grant.
Housing grants, mainly funded by the government and administered through the HUD and traditional lenders such as banks, are provided to assist low-income families in acquiring the funds they need to obtain housing. You could use the grant funds to buy a home, buy a rental property for housing income, renovate an existing property, or prevent loss of housing.
The great part about a government grants is that you don’t have to pay it back. It’s literally free money from the government, meaning that if you do qualify, it could significantly change your financial status and that of your family. However, the amount of funding available for different grant programs often vary from time to time, so it’s essential to check the HUD’s website for any changes periodically.
Who is Eligible for Grants?
Government grant programs are essentially directed at families with low-income who are likely not to be approved by a bank for funding. Unlike most other government assistance programs, various categories of low-income earners are accepted.
You could be a first-time homeowner or a previous homeowner. You could also be single, married, or married with children. You also don’t need to have a perfect FICCO score or history to qualify. You must, however, be a citizen of the U.S. or be a legal immigrant.
How to Apply for Federal Housing Grant Programs
To apply for a federal housing grant program, you must first sign up on Grants.gov as this is where most of HUD’s discretionary grants are available. Once you sign up on Grants.gov, you will receive access to an online workspace where you can view detailed information on available grants, submit grant applications, and keep up with your application status.
After creating a profile on the website, search for the kind of grant you want. For instance, if you wish to obtain grants to buy a home, you could search for grants for homebuyers by clicking ‘Search by category’ and then selecting ‘Housing.’
Once you have found the grant program of your choice, complete the application according to instructions given and submit. You can then check for your application status on the Grants.gov website using your given tracking number.
What are Mortgage Grants?
As a homeowner, you may face financial difficulties that could cause you to be unable to make your mortgage payments on time or in full each month. Thanks to mortgage grants, you can receive the help you need at no cost and prevent foreclosure.
You can obtain mortgage grants from state and local agencies and non-profit organizations that receive federal funds. The federal government mainly administers mortgage grants through the HUD to qualified applicants. Since mortgage grants are monetary awards that don’t need to be paid back, you can expect a very high competitive rate in acquiring such funds.
The funds awarded to successful applicants must be used strictly for the initial intended purpose. So, homeowners are expected to provide periodic updates on how the grants funds were utilized.
What is the HOPE Program?
HOPE stands for Homeownership and Opportunity for People Everywhere. It is a program administered by the HUD to provide funds for low-income families to buy public housing units or help them carry out activities that prepare them for homeownership.
They do this by funding different eligible grantees such as public housing authorities, non-profit organizations, and resident groups to enable them to develop and implement homeownership programs. The HOPE program has ceased to receive applicants. However, there are 30 existing implementation grants and 231 existing planning grants under this program.
What is the HOME Program?
HOME Investment Partnerships Program is a kind of federal assistance program provided by the HUD to all states in the U.S. to enable them to provide decent and affordable housing for low-income citizens, especially those below the poverty guidelines.
The funds obtained from HOME can be used for various affordable housing-related activities such as a home purchase or rehabilitation, site acquisition and improvement, Community Housing Development Organizations (CHDOs), and any other reasonable expenses related to the development of non-luxury houses for the public.
Housing grants come in different forms and have played a crucial role in assisting low-income earners in securing decent housing. There are housing grants available for both previous and aspiring homeowners that meet the income requirements.
It’s important to visit the HUD website to learn more about the programs and the funds available for them before applying. Application for federal housing grants has to be done through the grants.gov website, and you should ensure you follow the instructions thoroughly.