The support for low-income housing comes from the Federal Government. This could be rental assistance, mortgages, subsidies and loans priority for seniors, single families, disabled and veterans, funding, and low-interest loans. One has to clear a strict validation process to qualify for low-income housing assistance. Once cleared, there might be a waiting list for the allotment of a house, as there is a huge gap between demand and supply for low-income housing.

Definition of low income
On a national level, if the total earnings of all members over 15 is less than two-thirds of the median income, the family is considered a low-income household. The U.S. Census Bureau releases the national median income. The threshold for housing varies from one state to another, and it can be very high in one state and much lower in another.

Eligibility for low-income public and private housing and rental assistance
The following are the qualifying criteria for participating in low-income housing programs. The limits change from one state to another, and one has to contact the local Public Housing Agency (P.H.A.) to understand the limitation in that particular state.

• Size of the family
• Total household income
• Should be a senior, have a disability, be a veteran, or be a low-income family member
• Should be a U.S. citizen or a legal immigrant

One will have to gather documents and submit proof of eligibility, including family income, information about previous residences, the requirement for emergency housing, and all financial and tax information. The P.H.A. conducts a thorough and detailed vetting process to determine if one qualifies for low-income housing assistance.

Types of low-income housing programs
The major types of low-income housing programs include:

• Public housing
  Public housing was established to provide rental houses for seniors, low-income families, and the disabled. The Department of Housing and Urban Development (H.U.D.) oversees the public house programs and is administered locally by various public house agencies. The houses can be single-family houses or large high-rise apartments. About 958,000 public housing units are available across the 50 states, and about 20% are in rural areas. One has to go through a very strict validation process by the Public Housing Authority, and one may get a house once they are convinced that there’s a need for emergency housing.

• Private subsidized housing
  Subsidized housing is owned by private owners like landlords or non-profits who receive subsidies from the government when they rent their houses to low-income families. Contact the local Housing Authority, gather all the required documents, and submit a written application. Pay a portion – about 30% of the rent, and the landlords receive the rest as subsidies from the government.

• Housing choice vouchers
  The United States Department of Housing and Urban Development (H.U.D.) funds The Housing Choice Voucher program to assist low-income families and people with disabilities in finding safe and affordable private housing. The local Public Housing Authority can issue Housing Choice Vouchers to eligible families. Generally, the family income should be below 50% of the median income, and the limit may vary from one state to another.

• Low-income housing for veterans
  The U.S. Department of Housing and Urban Development (H.U.D.) offers a Veteran’s Program for homeless veterans. Eligible veterans can access housing vouchers; the program also gives them subsidies for two years. A veteran can access the services and verify their eligibility by dialing 1-877-4AID-VET (1-877-424-3838). The Department of Veteran Affairs also helps through a program known as HUD-VASH.

• Section 202 Supportive for the Elderly Program
  This federal program provides affordable rental housing for low-income seniors and people with disabilities.

Charges for leasing or renting low-income housing
If you qualify for rental housing for low-income housing, you will pay 30% of the rent to the landlord, and the Department of Housing and Urban Development pays the rest. If you qualify for public housing directly owned by Public Housing Authority, you pay about 30% of your income as rent. H.U.D. funds P.H.A.s for operating costs and capital improvements of the housing units.

Interest rates for mortgages for low-income housing
There are many government-backed loan programs that make homeownership possible for low-income individuals. The interest rates for some of these programs are:

• The interest rates for V.A. loans range from 6.25 to 6.875%, fixed for a 30-year term.
• The current interest rate for Single Family Housing Direct Home loan is 4.125% offered by the U.S. Department of Agriculture.

Best options for low-income home loans
Low-income households can achieve their dream of owning a house by taking a mortgage from government-backed programs, provided they qualify for the loans. One has to make the stipulated down payment of 3.5% and have a median credit score of 589. Closing costs like the lender and third-party fees as out-of-pocket expenses have to be paid, as these expenses cannot be financed. One has to be prepared to pay monthly mortgage payments and annual mortgage insurance premiums. Some of the best options for low-income home loans are:

• Federal Housing Administration loan
• U.S. A Department of Agriculture Section 502 Guaranteed Loan Program
• VA loans
• Good Neighbor Next Door Program for public service work
• State loans