How To Find Senior Housing That Won’t Break The Bank
(UnitedHeadlines.com) – Affordable housing can be difficult to find, even more so for seniors, who may have fixed-incomes. The government and other resources are available to people looking for affordable housing, even seniors.
There are federal and rural housing programs that might help seniors find affordable homes. In addition, reverse mortgages are also available to many senior citizens. Let’s take a look at some of them.
Reverse Mortgage
There is only one federally insured reverse mortgage, and only a Federal Housing Administration-approved (FHA-approved) lender can authorize the program, called a Home Equity Conversion Mortgage (HECM). This FHA reverse mortgage program allows borrowers to withdraw a certain amount of money from part of their home’s equity.
Lenders use the following factors to determine how much a reverse mortgage borrower can receive:
- The current interest rate
- The age of an eligible non-borrowing spouse or the youngest borrower
- The lowest of these three values, including the appraised value of the home, the mortgage limit determined by the FHA or the sales price
HECM can also come in handy when looking to purchase a primary property as long as you have the cash needed to cover the difference between the sales price and HECM proceeds and the closing costs of whatever residence you’re buying on hand. You can visit hud.gov to learn more about HECMs and other important information regarding eligibility.
Federal Help
The federal government has plenty of options for seniors regarding affordable housing or even assisted living. These programs can help with rent, mortgage insurance, home repairs and buying or renting homes. Two main federal government departments offer these programs: the US Department of Agriculture (USDA) and the US Department of Housing and Urban Development (HUD).
The USDA only deals with rural or agricultural homes and provides rural housing loans. The USDA’s Rural Development program has over 50 ways to help people get the help they need, and you can search their site for the program that best fits your needs.
In addition to what the USDA provides to seniors, HUD also offers many programs to help people find affordable housing, such as Housing Choice Vouchers and Public Housing. You can visit HUD’s senior information center to learn about the different options available.
Affordable housing doesn’t have to be difficult to find, even for seniors. These programs can help make the process easier than ever, making home security available to people of all ages and incomes.
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