The rate of home ownership in America has seen an impressive increase over time and today there are many home loans for low income seniors facilities. However, in the very recent past and due to the current financial recession, the growth has not been on the expected up and up. The initial increase in the rate of growth on homes in the United States of America has majorly been through the implementation of the Federal Housing Administration or FHA mortgage insurance. Through this mortgage insurance program that was initiated more than 70 years ago, many American citizens have gained and maintained the financial freedom that is gained from owning a house. Those who joined the scheme during its initial implementation are now reaping its fruits in their senior years.
By providing reasonable rates for home loans for low income seniors mortgage loans as well as creating jobs for the elderly, low income families, the Federal Housing Administration insurance scheme has seen many people in America have good homes and become some of the superlatively housed citizens in the entire globe, proudly making over seventy three million people owning their very own houses today.
Details of Its Operations
To quality and receiving FHA mortgage insurance assistance, applicants must be earning a very low, low or moderate income. A moderate income is one that is below the 115 percent range in the measure of area median income or AMI. A low earning figure is considered one which is between 80 and 50 percent of the AMI while a very low income is the one that falls below the 50 percent AMI. Also, to complete the qualifications, the family should not have any adequate housing plan but must be able to avail the housing payments; all the taxes, interest amounts, principal amounts as well as the insurance or PITI. FHA mortgages serve as one huge umbrella body and under this, there are other forms of loans that lenders in various agencies and financial institutions put confidence in extending their funds to those families that may have financial problems and cannot afford housing on their own and can also not meet normal loan requirements that commercial lenders require and underwriting guidelines.
Apart from senior citizens who are extended mortgage facilities by FHA, other people who can qualify for these facilities include newly weds, fresh college graduates or persons who are trying to completing their education.
Other Home Loans for Low Income Seniors
There are other facilities that are available for the senior citizen earning a low income. The direct lending facilities are provided to qualified applicants directly by the government and the applicant does not need to pass through a private lender to get the funding. One such facility is the USDA rural home scheme. Grant programs are other options that are made available through not for profit organizations like charities.
Other facilities include the very low income housing repair scheme that is accorded to senior citizens aged 62 years and above. With the passage of time, homes become worn and torn, and needing repairs and for the low earning elderly citizen, this can become difficult to do. The government has realized this and made available this program.