Get the Most Out of Government Home Loan Programs and First Time Buyer Programs

Are you a senior looking for affordable housing? Retirement is the time to enjoy life and not worry about finances. But for too many seniors, that's not the case. That's why the government has created programs to help seniors with their housing costs.

The average Social Security benefit for seniors in July 2021 is $1,556.72. That means the average retired worker in America will receive $18,680.64 per year. While this is a nice gesture, it's not enough to live on. That's why it's important to be aware of the different government home loan programs and first time buyer programs available to you. Here's a look at some of the best government home programs for seniors that you need to know about.

Government Home Loan Program in My Area

If you are a homeowner, live in the home as your primary residence, are unable to obtain affordable credit elsewhere, and have a family income 50% below the median income in your area, you can apply for a Single Family Housing Repair Loan to repair, improve, or modernize your home.

First Home Buyer Program

The Low Income Home Energy Assistance Program (LIHEAP) is designed to help homeowners and their families manage costs associated with energy bills and energy-related home repairs. This program can help ensure that your home is prepared to battle the cold of winter and the heat of summer. To be eligible for this program you must need financial assistance to cover home energy costs. If you already participate in other government assistance programs like SNAP, SSI, or TANF, you may be automatically eligible. To qualify, your annual household income before taxes must be below set dollar amounts.

First Time Buyers Program

The Section 8 Housing Choice Voucher Program is available for low-income residents and assists them with rental costs. Individuals get to choose their own residence and are not limited to subsidized housing projects. You can choose where you want to live so long as it meets the qualifying requirements. The owner of the rental property you choose must also agree to rent the property using the voucher program. To be eligible for this program, you must be a U.S. citizen and have a household income that is not more than 50% of the median income in your area. Once eligibility is determined and you have selected a residence where the owner agrees to this program, the local housing authority will inspect the property to ensure it qualifies for its voucher program.

Apartments for Senior

Some properties are earmarked for low-income residents. Developers and investors are given tax credits under the Low-Income Housing Tax Credit (LIHTC) program to set aside units for low-income tenants. If you meet the low-income eligibility requirements, you can qualify for LIHTC housing. There are many LIHTC housing properties that are reserved for 55+ or 62+ communities. You can research online to view available LIHTC properties for all residents or you can elect to research for properties just for seniors.

To qualify for the Section 202 Supportive Housing for the Elderly Program, at least one household member must be 62 years of age or older. There is no citizenship requirement to qualify for the Section 202 program. The household must have an income that does not exceed 50% of the area median income. Successful applicants will pay 30% of their net income for rent, with the rest being subsidized by the housing program. The properties must be part of the Section 202 program to qualify for the rent subsidy.

It is a good idea to check with the local housing authority of your city or county. There are public housing complexes that are managed by local housing authorities where eligible tenants can stay for about 30% of their net income, including utilities. You must qualify as a low-income resident to be eligible for public housing. Contact your local public housing authority for more information and to see what properties are available.

First Time Home Buyer Loan

Another option to help you with living expenses is a Home Equity Conversion Mortgage (HECM), or reverse mortgage. If you are 62 years of age or older and own your residence outright or have a small mortgage balance, you might qualify for a reverse mortgage. A reverse mortgage gives you a loan using the equity you have in your home. The balance of the loan is paid back upon the sale of your home.

There are risks involved with borrowing money from the equity of your home and because of this, applicants must go through a course given by an approved HECM counselor. You can speak to your lender to see if a reverse mortgage might be an option for you.

Home Buying

Alongside federal housing programs, most states also run their own affordable housing programs. Programs vary depending on what state you live in, but you can generally find at least one state-run program in your area. For example, the Florida Housing Finance Corporation (FHFC) has many programs to assist seniors and all residents with affordable housing. Residents can use the Florida Housing Search website to search for affordable rental housing.

The FHFC offers programs such as the State Housing Initiatives Partnership (SHIP), the Foreclosure Counseling Program, and the Affordable Housing Catalyst Program. New York has a number of options for seniors to access affordable housing, such as the New York Foundation for Senior Citizens and New York City’s Senior Affordable Rental Apartments (SARA) program.

California also has a number of programs available, such as the California Government’s Department of Social Services and most cities in California have their own affordable housing for seniors initiatives.

Housing can be expensive. That's why it's important to know that there are many government housing programs available to make sure that you don’t slip through the cracks. Research online for more information, apply to some of the programs in your area and continue to enjoy your retirement.