HUD Assists House Hunters by Offering Counseling Grants, Funding

Man and woman planning to buy a home

The U.S. Department of Housing and Urban Development’s $50 million of counseling grants will help people in finding their own homes.

More than 1.4 million people will benefit from these grants, as several groups will be able to assist them in taking care of this housing requirements. Aside from government funding, home-buyers can also consider other types of financing whether it’s for starting a group home or for personal reasons.

Funding Allocation

HUD Secretary Ben Carson said that people who receive counseling services have higher chances of closing a purchase deal, rental lease or avoiding foreclosures. The department awarded more than $47 million to 255 groups comprising State Housing Finance Agencies, local housing counseling agencies, national, regional and multi-state organizations.

The grants represent the HUD’s continued efforts to help people in achieving positive housing outcomes for buyers and renters alike. In 2016, it released a study that highlights the positive impact of counseling to the decision-making process. The Federal Reserve Bank of Philadelphia and the Urban Institute sought to find out more about this, as it conducted research on the benefits of counseling for first-time buyers and homeowners that face foreclosure problems.

Group Homes

The types of grants for starting a group home depends on their sources. For instance, the HUD offers block grants to low-income families and other certain households. Other types of block grants include those for small businesses.

On the other hand, formula grants derive their term from the calculation of demographic or geographic information. These details will then determine the estimated allocation for a certain amount. Project grants are another kind, which provides direct funding for contractual projects such as housing assistance for people with disabilities.

Conclusion

The government’s counseling grants provide several options for prospective buyers to acquire their own houses. If you prefer other funding options, banks and other lending companies also offer services, particularly for this necessity.