1 in 3 Homebuyers Are Missing Out on These Housing Assistance Programs
- Author: Marsha Jacobs
- Posted: 2024-01-27
KeyBank Survey Discovers 30% of Respondents Failed to Seek Assistance
Since April is Fair Housing Month, KeyBank has decided to release a lot of helpful reports on housing inequality. One of their most interesting findings was their housing assistance poll. After surveying 1,000 low-income homeowners, KeyBank discovered that 1 in 3 families didn't know about home-buying assistance programs.
These survey respondents either did not apply for housing assistance or were not aware that these programs even existed. Though many of these people could have qualified for grants to help with down payments or other costs, they skipped applying for help and paid everything themselves. Though KeyBank only surveyed a small portion of the population, industry experts believe the survey results can apply to many low-income families around the country. This could potentially mean that thousands of homebuyers are paying far more than they need to.
Low-Income Homebuyers Are Least Likely to Learn About Assistance Programs
Interestingly, the report from KeyBank found that the people who were most likely to benefit from housing assistance were less likely to know about it. This highlights a major problem with housing equality in the nation. Though there might be financial assistance for low-income buyers, there are other barriers to getting a home.
Often, lower-income families are less aware of how mortgages and housing purchases work. Not only do they not have experienced family members who can provide insight on the subject, but they may also be lacking in educational opportunities. Even though the nation has made strides toward housing equality, people in lower economic classes still struggle. Though many might technically make enough to afford a home, they can still end up struggling to actually apply for mortgages and close on houses.
What You Can Do to Find and Apply for Housing Assistance
To help address this issue, KeyBank hopes to launch a program to educate home buyers on how housing assistance works. This could make it a little easier for people to learn about the various options for supplementing their income and purchasing a house. However, you don't have to wait until this program starts to begin looking into your options. Just doing a little research can go a long way. You can often start by researching local housing assistance programs. Often, there are state-wide or city-wide organizations that help low-income families buy homes. There are also many charitable programs like the KeyBank Home Buyer Credit program that can give people up to $5,000 to put towards their closing costs.
In addition to local and nonprofit assistance, there are also a variety of federal programs to consider. Government-backed loans and mortgage assistance programs can help people get a loan even if they wouldn't qualify for a traditional mortgage. The Housing Choice Voucher program is another federal program that can be quite helpful. If you qualify for this program, you can get assistance paying for your monthly housing costs.
Don't be afraid to ask for help either. Navigating all the various programs on your own can be tough, but there are professionals who have experience assisting homebuyers. A lot of banks and lenders provide direct assistance to customers. You can consult with a mortgage broker or bank loan officer about your options. Not only can they explain the mortgage process to you, but they're also aware of potential financial grants you can apply for. By consulting with the experts for free, you can end up paying far less for your home.
Ultimately, there are a lot of fantastic housing assistance programs out there. Even people who aren't living below the poverty line can potentially get a little help. With soaring interest rates and reduced housing inventory, it pays to be aware of assistance options. Just taking a little time to apply for the right programs can end up saving you thousands of dollars.
