The world doesn’t stop moving, and expenses never stop coming. One thing that happens to every person at one point in their life is financial strain. This is why there is such thing as government assistance for qualifying individuals.
There are a number of requirements and qualifications in place in order for you to receive aid from federal financial programs. Let’s look at various federal programs available that you may want to consider applying for and the qualifications for each one!
What kind of government-funded programs are there?
Whatever your current financial situation may be, chances are there is government assistance available to help. Whether you’re dealing with the cost of rent, education, healthcare, or childcare- there are opportunities available for a better financial future!
1. Housing Programs
The prices for housing have risen exponentially, making homes more difficult to afford.
As of 2021, inflation within the housing market has risen to over 19%. Luckily, there are housing options available that are still budget-friendly.
Each program is different, with some that provide help with rent and others that help Americans be able to even buy their own home.
Chenoa Fund
The Chenoa Fund is a program created to help individuals with putting down payments on new homes. This fund will provide up to 3.5% of the value of your new home!
There are two things to bear in mind and consider before applying for the Chenoa Fund:
- Your FICO credit score needs to be a minimum score of 620
- Your debt-to-income ratio cannot exceed 45%
Depending on your eligibility, your mortgage may include no monthly payments or interest rates!
For others, this program is also rewarding to individuals who are diligent with their mortgage payments. If you pay your mortgage on time for 36 months, your debt may be forgiven.
Federal Housing Administration (FHA) Loan
This program is geared towards low-moderate income families looking to buy a new home but can’t afford to pay in full.
By having a loan insured by the government, your chances of being approved for a mortgage plan are much higher.
You also don’t need a super high credit score in order to be eligible for government assistance!
If your credit score is above 580, you can receive up to 96% of your home value in loans. If your score is above 500, you can still qualify for up to 90% of your home value in loans!
Forms of FHA Loans include:
- Home Equity Conversion Mortgage (HECM)
- FHA (203K) Improvement Loan
- FHA Energy Efficient Mortgage
- Section 245(a) Loan
Housing Vouchers and Section 8 Housing
This program was created by the Department of Housing and Urban Development to help low-income groups afford a safe and clean home.
Qualifications for this program include the following:
- Applicants must be 18 years or older
- Must be a legal citizen or eligible non-citizen
- Applicants must have a clean record free of any drug-related criminal activities
- Applicants cannot make more than 50% of their local media income
2. Education Programs
More than 44 million Americans have student debt. Thankfully, the government offers assistance to those who are wanting to pursue an education but don’t have the funds to do so!
There are grants that offer funds for college without the student having to pay it back later. That way, you don’t graduate with so much crippling student debt.
Pell Grants
Pell grants can offer undergraduates up to $6,900 per academic year. They can be applied for through the FAFSA online application.
Before receiving government assistance, the federal deciding committee will consider:
- Expected Family Contribution (EFC): EFC is found by calculating your parents taxed and untaxed income. Other factors include the number of individuals in your household and how many members are currently attending college.
- Cost of Attendance (COA): This number represents the total cost for you to attend a college or university. It adds up all expenses including tuition, fees, supplies, housing, and transportation.
3. Healthcare Programs
Healthcare continues to be one of the biggest causes of debt for many Americans today. A trip or ride in an ambulance alone can cost you hundreds of dollars. Not to mention the monthly expenses of private health insurance providers.
Medicaid/Medicare
This government assistance program has been around since 1965 when President Lyndon B. Johnson signed a bill to help Americans afford health and medical needs.
This program was created primarily for people with specific health risks such as the disabled and elderly. However, this program is also available to those who are in a financial bind due to medical reasons.
State Children’s Health Insurance Program
This program was created in 1997 to provide health insurance needs to low-income children under the age of 18.
This program was made through the partnership of Federal and state governments to give government assistance to families who make too much to qualify for Medicaid.
Each state has additional qualifications, however, the base requirements for this program include:
- Your child must be 18 years or under
- Uninsured
- Citizen, National, or Legal non-citizen
Another factor that the government considers when determining eligibility is a household’s total calculated income. The most assistance typically goes to those with the most financial need.
Apply today!
Financial hardship is a difficult reality for many citizens, and everyone goes through it at some point. This is why these federal programs were created.
There are many more programs available under these categories of assistance. Other programs include food assistance, retirement, and unemployment assistance.
These programs aren’t permanent solutions but can give you the assistance you need to get back on your feet. Check your eligibility, complete the application, and get the financial help you need today!
