Grants for Low Income Families

Ever since the economy took a turn for the worse many families had fallen into the low income state. Families that are considered low income can apply for financial assistance from the government. You can find many subsidies and grants that are made available for low income families which would help pay for housing and food. In order to apply for these grants for low income families, you have to know where to look. For families looking for subsidized housing, they may want to look at Section 8 housing.

Section 8 housing is a federal program administered by the states. It provides rental assistance to low-income families through vouchers. The vouchers, provided by the local housing authorities, help families move into homes that are not part of the public housing network. The program helps people move into safe and affordable housing. The Public Housing Act combines housing programs for rental assistance offered by Section 8 into one market-driven program. It improves the tenants’ living standards and gives them more housing to choose from.

Low income families can get help with their energy bills through the low-income home energy program. Families that make less than 150% above the poverty level are eligible for participating in this program. Once the families qualify, this federal grant program administered through local and state agencies will pay for the energy usage of low income families. States may apply for a portion of the block grant to help low income households meet the cost of immediate and emergency household energy bills. The funds are typically given to states depending on the weather and the population where it would most benefit the people.

The Food and Nutrition Service, or FNS helps low income families through the supplemental nutritional assistance program, school meal programs, summer food service programs and other programs. These programs help ensure that low income families get the proper nutrition. The FNS is administered by state, local and community organizations and they help reduce childhood hunger, reduce obesity and help people get to the anti-hunger programs and safety networks. Not only do they partner with the government, the FNS has also partnered with community food banks, faith-based organizations and anti-hunger programs.

Grants for First Time Home Buyers

Owning a home is an American dream but many people are unable to put down money in order to buy a home. Not only is there a down payment, but there are other expenses associated with owning a home such as repairing the home. At times like these, it is crucial for these people to get grants for first time home buyers which would greatly help them fund the purchase of their dream home. Grants are much better than a mortgage because they do not need to be repaid.

It is imperative to know that the federal government does not directly give out grants to people. Instead the federal government gives federal grants to states and cities and they are responsible for giving out the money to the people.

Usually federal grants are geared towards helping the first time home buyer get into their first home.  Since these grants are meant as an aide to buying a home, you should not expect it to cover the entire cost of buying a home.  Rather, these grants would help with closing cost or fixing up the home after you have bought it.  You should probably expect the grants to cover less than 10% of the home's value.

Home buyer grants are typically used for buying a new home, which means there are some rules you have to follow in order to get these funds. One of the rules to getting a grant is that you have to be able to obtain a mortgage.

Also, applicants for first time home buyer grants are expected to complete a class that will help you in becoming a home owner.  These classes must be HUD approved.  These classes will teach you how to get your finances ready so that you can buy your home.  It will also teach you how to budget so that you can keep your household expenses under control.

American Dream Grant

The American Dream Down-payment Initiative (ADDI) was a federal grant program that was signed into law in late 2003 and was expected to run through 2008.  This particular grant was supposed to give out $200 million each year making it one of the most generous grant program at the time.

The ADDI program was created to help low income first time buyers purchase a home by giving them money for down payment, closing costs, and fixing up the home.  ADDI program assistance was limited to the greater of $10,000 or six percent of the home's purchase price.

HOME Investment Partnerships Program

HOME is the largest Federal block grant to state and local governments.  This program was created to help low income families afford a home.  Every year, the HOME Investment Partnership Program distributes about $2 billion among the states and hundreds of other localities throughout the United States.

Households that are eligible for HOME assistance can be different depending on the nature of the funded activity. For rental housing and rental assistance, at least 90 percent of families that will benefit from this grant must have incomes that are no more than 60 percent of the HUD-adjusted median family income for the area. For rental projects with five or more assisted units, at least 20% of the units must have families living in them that have incomes that do not exceed 50% of the HUD-adjusted median. Also, the incomes of families receiving HUD assistance must not exceed 80 percent of the area median.

Other Home Grant Programs

You can get more information on these programs by going to the HUD website. At the HUD website you can find out about the Community Development Block Grants (CDBG), American Dream Down-payment Initiative (ADDI), Emergency Shelter Grants (ESG), HOME Investment Partnerships Program, and Housing Opportunities for Persons with AIDS (HOPWA).

Through HUD you can also find out about other programs offered by state, county, and city governments.  For instance, you can find information on programs like Habitat for Humanity and how to get in touch with them for help.