HUD does a tremendous amount to provide lower and middle income people with funding for buying a home with special programs that are in addition to its standard FHA program. The following are some of the HUD financial programs.
• The 203k Rehabilitation Mortgage. This program allows the buyer of a handyman-special or fixer-upper to obtain a mortgage loan, not only for the price of the home, but also for the cost of rehabilitation of the property.
• The Good Neighbor Next Door Mortgage Program. This program is for law enforcement officers, certain level teachers, firefighters, emergency medical technicians, and first responders. The program offers substantial incentives to these people so that they can live in the community where they work in what are called revitalization areas. The home buyer must commit to live in the property as his or her primary residence for at least thirty six months.
• Hurricane Discount Home Sales Program. This program was created on April 24, 2006. It allows hurricane evacuees with a FEMA registration as a hurricane evacuee to purchase a HUD home in any part of the country at a discount from its fair market value. In addition, HUD pays a portion of the closing costs and provides an FHA mortgage. The home buyer must commit to live in the property as his or her primary residence for at least one year.
• Homeownership Voucher Program. For those who are in the lower income group, HUD provides a Homeownership Voucher Program, which is similar to the Public Housing Voucher system in use for rentals. The home buyer must meet some very strict requirements including a minimum amount of income, again similar to what is done in rentals.
• Section 184 Indian Housing Loan Guarantee Program. This program was created to provide an influx of mortgage lending in Indian Country. It offers a government loan guarantee to private sector lenders who make mortgage loans in Indian Country. Indian Country is defined as land located in a Native American area or Alaska Native area.