Home Loans

How does the Department of Housing

The mission of the Department of Housing and Urban Development U.S. (Department of Housing and Urban Development or HUD) is to facilitate access to affordable housing, increase homeownership and promote community development, particularly in low-income, urban areas. The “Affordability” in regard to housing , is generally regarded as no more than 30 percent of the total annual income of a family. However, more than 12 million people in the United States are spending 50 percent of their income on housing, which reduces their ability to pay for other needs. Through these agencies like HUD, HOME Investment Partnerships, Self-Help Homeownership (help for house purchase) and Homeownership Zone (zone homeownership), federal resources can be allocated across the state to help families low income on rent, purchase or remodeling a home, or to help develop affordable housing areas.


The HOME Investment Partnerships provide grants to states and local governments to fund housing programs for low-income families. Each state has the flexibility to structure your program, within the guidelines of the law HOME (home), so that serves the community. Through the program of self-help homeownership, local non-profits can receive subsidies to purchase land and develop through volunteer programs. A homeownership zone (Homeownership Zone) is one in which the community has reclaimed vacant or distressed areas in order to turn them into one whole neighborhoods housing, affordable housing for low-income families.

Community Development Grants

Apart from increasing homeownership among low-income families, one of the main objectives of HUD’s community development. There are several HUD grants available to help in the revitalization of the community. One, the Community Development Block Grant (or Community Development CDBG) provides annual grants to cities, counties and states considered eligible to provide affordable housing for low-income families in order to revitalize urban areas. Other grants obtained through the Disaster Recovery Program Assistance provides money to those areas that the president declared as disaster areas. Through a Property Program Housing Public Housing Public Housing Authority units may sell all, or a portion thereof, existing residents so they can become homeowners. Similarly, the homeownership vouchers provide assistance to first home buyers who need help to pay the monthly mortgage or other home-related expenses.

Offers Purchase Programs

HUD works, too, to serve families on a more personal level through various programs. The Good Neighbor program provides community service workers, up to a 50 percent discount on the price of a home from the list. Those eligible for the discount include teachers, public workers, firefighters and emergency personnel. These houses are listed in the “revitalization areas” and the homeowner must be willing to occupy it for at least 36 months. Another program designed to help with the ownership of the house is the Indian Home Loan Guarantee Program (Section 184). Established in 1992, the goal of this program is to provide assistance to American Indians and families, tribes and Alaska Native villages. HUD also offers the consumer a great deal of information about the buying process, from how to avoid predatory lenders to know your rights when buying a house.