New Orleans HUD Canal Corner[/caption]Samantha Greenbaum---Low income families often feel that their only housing options are Section 8 homes or apartments in sketchy areas of town. As a result, they frequently don't even try to find other options. However, not all Section 8 houses are located in questionable neighborhoods; indeed, many are in mixed-income areas throughout a given community. Although there are times and circumstances when Section 8 rentals are an excellent choice, low-income families have other alternatives that include home ownership, as well.
Homeownership Vouchers
Administered through the U.S. Department of Housing and Urban Development (HUD), homeownership vouchers are designed to help first-time home buyers with mortgage payment assistance and other homeownership costs. Interested potential homeowners can find out more information on homeownership vouchers by contacting their local Public Housing Agency (PHA).
The Pros and Cons of Land Contracts
Land contracts are basically rent-to-own options that are attractive to those who do not have the cash for a large down payment. Those interested in exploring whether or not this type of transaction would be a good choice for them are advised to discuss the proposed situation with a real estate lawyer.
The pros of entering into a land contract are that, because it's a private contract between two individuals, they are free to decide on their own terms. A person's credit rating has no bearing on this type of arrangement, so it is often an attractive option for those who do not have the best credit ratings.
The cons include that sellers frequently charge more than the home is worth because no appraisal is necessary for this sort of sale. Also, if the buyer cannot make payments, ownership of the entire property reverts back to the seller even if the renter is only one or two payments away from having the property paid off.
Some Homes Can Be Purchased for One Dollar
Single-family homes that have been taken over by the government can sometimes be purchased by private individuals for the price of a dollar. Those who are interested in this program should visit the HUD website and check for available properties in their communities.
Mobile and Manufactured Homes
These homes often have a much lower price tag than others but are nonetheless sturdy and livable options for those without a great deal of money to spend. Mobile homes are often sold using land contract deals and can often be purchased with a minimal down payment. The Federal Housing Authority offers loans on mobile and manufactured homes.
Federal Housing Authority (FHA) Loans
The Federal Housing Authority has a variety of home loans available for people of low and middle incomes. Future homeowners can find low-down-payment programs, as well as programs for first-time buyers. Fixer-uppers are available for people who are handy with tools, and information can be accessed by visiting the agency's website.
Additional Options
If you’re not yet ready to buy a home, there are more transition-related options. In some communities, non-profit organizations operate housing programs for low-income individuals and families. Some require only that you and your family members remain drug- and alcohol-free, possibly attend counseling and that you show up for work (they often will help you secure a job if you are currently unemployed). Others charge minimal rent and may or may not provide you with additional services. You should contact your local United Way for more information on the housing charities they partner with and can vouch for.
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This article was provided by Samantha Greenbaum, health-conscious mother of two.
Here are a few things you have to remember. Availability with programs such as section 8 usually have a very long waiting list. Also with Hud there purchase a home for a dollar program is for non profits only and it must be used for a specific purpose. In addition if you have an previous records such as a felony you may not qualify for certain housing programs. There are in addition other options also such as other programs that vary from state to state. One good way to find out is by calling First Call For Help where ever you live and they give referrals for resources. What ever the issue or barrier maybe, don't give up and start your search early because sometimes red tape is the issue also.
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