Housing and Energy Assistance
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Housing and Energy Assistance
Mortgage help
Mortgage forbearance programs are offered by many lenders. Forbearance provides a temporary suspension of your monthly mortgage payments. A homeowner will thus have time to explore their options, get counseling, or modify their loan during this time. Programs vary by lender. It is important to remember that your lender would generally rather keep you in your home than foreclose on you, because foreclosure is costly, time-consuming, and not always profitable for the lender. The key is to contact your lender early.
Loan modification programs
Several government agencies have worked together to craft programs. They include the Treasury Department, the Federal Housing Administration, Fannie Mae and Freddie Mac, the Department of Housing and Urban Development (HUD), and participating financial institutions and other finance-related entities.
As well, lenders have their own versions of loan modification, which homeowners can use if need be.
Many financial institutions participate in one or more of these programs. To find out whether your bank, credit union, or other financial institution participates in any, you must contact it and ask. You will be evaluated for programs based on the criteria that the programs require.
A warning: given that scammers have preyed on many unsuspecting homeowners, it is best to contact your lender directly.
Rental assistance
Many state and local governments have agencies and public assistance programs that help renters with paying rent, security deposits, and other housing expenses. Like most other programs, you must meet certain qualifications. Some programs are:
- USDA Rural Development. Provides vouchers, subsidies, and rental assistance.
- HUD Rent Assistance Programs. HUD, a federal agency, offers some programs.
- Housing Choice Voucher Program. Also called Section 8.
Eviction prevention programs
Funded by the federal government but run by local organizations, eviction prevention programs are a resource for people in need of help. People will need to show proof of eligibility. You can contact your county community action organization, a local branch of the Salvation Army, or a local government agency for assistance.
Energy assistance
Many energy companies offer programs for low-income people who are struggling to pay their electric, gas, or oil bills. Contact your energy company to ask about them and how to qualify for them.
There are also government programs:
- Low Income Home Energy Assistance Program. This is a federal program that assists low-income households. It is part of the US Department of Health and Human Services. The individual states often provide additional money to it. Applicants must meet certain income requirements to qualify. In most states, the program is run on a first-come, first-served basis.
- Weatherization Assistance Program. Related to LIHEAP is the Weatherization Assistance Program (WAP), overseen by the US Department of Energy. It, too, uses income requirements. WAP offers help with lowering energy costs. Services include energy audits, insulation help, and repair of appliances.