As the cost of living continues to skyrocket, many seniors and other individuals are finding it increasingly difficult to make ends meet. Housing has become an absurdly expensive expense in most parts of the country, whether a rental or an owned home.
Having paid off their mortgage, senior homeowners now have the freedom to enjoy life without worrying about a monthly mortgage payment. But with the cost of living at an all-time high, these seniors may still struggle to keep up with expenses such as property taxes, utilities, food, clothing, and medicine, especially if their incomes are limited to social security or other sources. Fortunately, there are plenty of housing programs in 2023 to provide seniors with much-needed financial support.
Reverse Mortgage (HECM)
Many seniors are looking for ways to "age in place" and remain in their family home rather than moving to a new residence. Yet, even if the mortgage has been paid off, some can still struggle with the costs of living in their home. Thankfully, the Home Equity Conversion Mortgage (HECM) program is there to help. This program, commonly known as a reverse mortgage, allows seniors to access money from their home's equity without having to sell up - they can simply repay the loan when they later decide to sell or after they pass away. With the HECM program, seniors can stay in their homes and receive the money they need to meet their expenses.
The United States Department of Housing (HUD) administers the Home Equity Conversion Mortgage (HECM) program, which has specific criteria that must be met to be eligible.
If you are 62 or older, own your home with either a small mortgage balance or outright, and are up to date on all your federal debts, you could be eligible for a Home Equity Conversion Mortgage. All you have to do is attend a consumer information and counseling session provided by an approved HECM counselor and apply through a HUD-approved HECM lender.
HUD Section 202 Housing Program
Seniors aged 62+ who are unable to secure a reverse mortgage or who are renting can benefit from the Section 202 program offered by HUD. This program provides more affordable housing options for those with limited incomes, specifically those earning less than 50% of the local median income.
Seniors who qualify for subsidized housing can take advantage of Section 202 approved developments, offering tremendous benefits. These seniors will only pay 30% of their net income as rent, while enjoying the peace of mind that comes from HUD's specified senior housing standards, which guarantee quality living environments.
Tax Credit Incentive Program
Property owners, landlords, and investors are incentivized to construct and provide affordable housing for those on low incomes, typically below 50% of the local area's median income, through the offering of tax credits. These dwellings are often specially tailored for seniors aged 55 or over, providing a vital source of housing options for this demographic.
Government Home Improvement Grants and Loans
The government offers a range of programs to help senior homeowners update or renovate their homes, particularly if the work is necessary for health and safety reasons or to make the home more accessible for seniors with mobility difficulties. In this way, seniors can remain in the beloved family homes they've known for years.
Are you in need of financial assistance? Look no further; there are grants (no repayment required) and loan options with deferred repayment plans. The Federal Housing Agency (FHA) and the Veteran's Administration (VA) both have programs to help homebuyers, particularly veterans.
Low Income Home Energy Assistance Program (LIHEAP)
Seniors struggling with expensive electric and gas bills may be relieved to learn about the LIHEAP program offered by the U.S. Department of Health and Human Services. This program offers a lifeline to: - Those with an income of less than $20,000 for a single person - Those with an income of less than $27,000 for a couple The program provides assistance with energy costs, bill payments, energy crises, weatherization, and energy-related home repairs. Even better, those who are already receiving SSI assistance are automatically eligible.
State Housing Programs
State governments across the country have devised innovative programs tailored to the needs of their citizens, including:
The Golden State of California is home to numerous cost-effective housing opportunities and programs, such as those provided by its Department of Social Services, as well as a variety of city and county-level initiatives designed to ensure seniors have access to affordable housing.
The Florida Housing Finance Corporation is dedicated to improving the quality of life in the Sunshine State by providing a range of cost-effective housing programs, foreclosure support, and other vital services.
The New York Foundation for Senior Citizens, New York City's Senior Affordable Rental Housing, and New York State's Affordable Housing Corporation are here to lend a helping hand with various programs and assistance for those in need!