Because of the economic recession and the fall of housing industry, housing programs and home loans for low income seniors and many individuals are not as many as they used to be. Many of these housing loans for low income seniors have been put on hold and worse of all others have been put to stop.
However, housing assistance and loans are still plentiful especially for those people who have low income. As long as you know where to start looking, small windows of opportunities will be available. That is how we can help you. On this article, you will find various information that is related to low income mortgages and other programs available for seniors.
The 3 Types of Loans
Before we begin with the different home loans for low income seniors, we must first begin by detailing the background information about home loans. The improvement seen in the economy has opened the doors to several types of low income home buying programs that is available today. Directly or indirectly, they can provide mortgage assistance in any way.
Primarily there are 3 kinds of mortgage programs designed to grant housing loans for low income seniors.Credit: http://ruhlblog.com/2011/06/10/mortgage-insurance-cancellation-the-myths-and-realities/
Mortgage insurance – The mortgage loans that is made by a private lender is insured by the federal government or any insuring organization. With the insurance from the government it makes it easier for borrowers, particularly seniors to qualify for a loan. Even if their income is highly disqualified for any conventional mortgage, still home loans are available to them. The best examples for this are the FHA and VA loans.Credit: http://www.dailyrosetta.com/direct-lending-solutions-offers-debt-consolidation-loans-to-customers-with-bad-credit/4878.html
Direct lending – There are times when home loans for low income seniors and other borrowers are given directly by the government without going through any private lender. An example of this type of housing assistance is the USDA rural housing program.Credit: http://www.ehow.com/how_5837653_government-grant-programs-online.html
Grant programs – Grant programs are monetary grants that is given by any non-profit or any agencies of the government. With this, those people who have low income have another way available for them to purchase their own home.
State Sponsored Loans
Sometimes, housing loans for low income seniors can be found in your state as well. Many states offer assistance to its locals who plan on purchasing their homes. Often times, before one is able to acquire housing loans whether financial aid and or grant they have to undergo a formal education counseling or seminar.
Unfortunately it is impossible to list all state sponsored loans here because it is too many to mention. The easiest way to look for the needed information about the loan is search it in the internet. Google for your state’s housing loans and programs. You might not be able to close your mouth after seeing the opportunities available for you.
FHA LoansCredit: http://loudounscene.com/2011/04/fha-loans-get-more-expensive-lpmi-alternative.html
If you are looking for other housing loans for low income seniors, it is highly suggested to look into the FHA or Federal Housing Administration loans as well. The program they offer is not only limited to borrowers with very low income, low income or moderate income. So it is suited for anyone who wishes to have their own homes.
The Federal Housing Administration was formed under the National Housing Act of 1934 and it insures home loans that were approved by the lenders. The lender gets reimbursed by the federal government if in the event the borrower defaults on the loan.
Just like any other type of mortgage loan, the borrowers will still have to show they can afford the monthly mortgage payments. In order to see how well a certain borrower can manage the monthly payments lenders will have to review the income and the debts of the borrower. Moreover, borrowers must make a down payment which is at least 3.5 percent of the total amount of the loan. So definitely it is not a hand-out but it provides doors of opportunities for low income borrowers like seniors to seek a home loan.
Rural Housing LoansCredit: http://www.augustagahomehunter.com/augustagarealestate/usda-guaranteed-rural-housing-loan-program/
For seniors who are living in rural areas and is definitely looking for home loans for low income seniors; the United States Department of Agriculture has an answer for that. They have housing programs designed for people with “very low income” or “low income” capabilities. According to their guidelines very low income applies to people with below 50 percent median income to the place they live and low income applies to 50 to 80 percent of median income.
The loans offered by the USDA can be used in many ways, buying new homes, build new ones, rebuild wrecked homes, renovate or relocate a home as long as you meet the necessary requirements. These loans are unique because the federal government is the one lending you the money directly. The loans offered directly is entirely different to loans insured by the government.
Very Low Income Housing Repair Program
The Home Repair Loan Program or the Very Low Income Housing Repair Program is a grant provided to senior citizens who are 62 years older and above. It is given to answer to the need to renovate their homes to better improve the condition and safety of their living.
The funds granted can be used for almost anything like fixing plumbing, improving bathrooms, providing heat and running water inside their homes and many others. It can also be used to modify the structure of homes to create a safe environment for seniors with disabilities. The grant given is $7,000 and must be returned if the house is purchased within 3 years of receiving the grant.
Federal Emergency Management Agency
The Federal Emergency Management Agency or FEMA provides grants and financial assistance to restore, remodel and fix homes that were destroyed by natural disasters like hurricanes and tornadoes. In partnership with the Federal Direct Housing and National Disaster Loans, the individuals are granted financial aid for projects that are not under FEMA. Since 2009, the risk of losing Social Security benefits for seniors who receive assistance from FEMA are long gone.
Specially Adapted Housing Program
The Department of Veterans Affairs is the one managing this program and assists disabled military veterans and seniors in remodelling their house. The money granted is used to modify homes so there is an improved mobility and encourages living independently. The remodelling done can include hallways, pathways, outdoor spaces, kitchens, bathrooms, floorings and even doors. The grants extended can fund up to 3 remodelling projects for every veteran that is eligible for the program.
The search for housing loans need not be difficult. With ample time and perseverance loans can be easily found. However, like every other loans they must be paid on time and never ignored. These way penalties are avoided and a clean record is maintained. So in its entirety home loans for low income seniors can be possible.