HUD, the US Dept of Housing and Urban Development, provides a variety of funding programs. HUD's mission is to increase homeownership, support community development and increase access to affordable housing. To accomplish this, HUD develops partnerships with government agencies, faith-based and community organizations that leverage resources and improves their ability to be effective on the community level. HUD does not provide individual loans to homeowners. Instead, they provide grants to the government, faith-based and community agencies that, in turn, provide programs to residents within their communities. Not every community applies for every funding opportunity, so it is best to contact the City and/or County that you live in for detailed information on what is available in your area. Do not rely on the HUD website to determine what is offered locally or regionally.
In addition to grants, HUD works with lenders to set up mortgage, refinancing and rehabilitation/repair loans for individuals. Again, HUD does not loan directly to individuals. A qualified applicant must apply through a HUD approved lender to take advantage of the program. And, often times, there are income limits an applicant must meet in order to qualify which means they must be determined to be at the very low, low or moderate median income levels. The site to access the HUD approved lender list and the income limit charts are listed below.
Here are a few other programs and agencies that may be able to provide assistance, along with a brief explanation and the website link to each.
203(k) mortgage/refi program to rehab/fix up homes: MUST GO THROUGH A HUD APPROVED LENDER (not HUD or the County) - When a homebuyer wants to purchase a house in need of repair or modernization, the homebuyer usually has to obtain financing first to purchase the dwelling; additional financing to do the rehabilitation construction; and a permanent mortgage when the work is completed to pay off the interim loans with a permanent mortgage. Often the interim financing (the acquisition and construction loans) involves relatively high interest rates and short amortization periods. The Section 203(k) program was designed to address this situation. The borrower can get just one mortgage loan, at a long-term fixed (or adjustable) rate, to finance both the acquisition and the rehabilitation of the property. To provide funds for the rehabilitation, the mortgage amount is based on the projected value of the property with the work completed, taking into account the cost of the work. To minimize the risk to the mortgage lender, the mortgage loan (the maximum allowable amount) is eligible for endorsement by HUD as soon as the mortgage proceeds are disbursed and a rehabilitation escrow account is established. At this point the lender has a fully-insured mortgage loan.
Property Improvement Loan Insurance (Title I) - MUST GO THROUGH A HUD APPROVED LENDER (not HUD or the County) - HUD insures loans individuals apply for with a lender for home improvements - minimizes the risk of default by individual - encourages HUD approved lenders to loan on homes needing repairs/improvements
Rural Home Improvement and repair loans/grants - applies only to applicants that are in the very low to low median income categories (see Income Limits charts below)
Approved HUD lender list:
Direct Loan and Grant Income Limits - for Oxnard-Thousand Oaks-Ventura: to determine your income limits to qualify for certain loans/grants
Guaranteed Loan Income Limits - for Oxnard-Thousand Oaks-Ventura: to determine your income limits to qualify for certain loans/grants
Ventura County Agencies that have housing programs:
Cabrillo Economic Development Corporation - CEDC, 805-659-6868,
"Rebuilding Together" is the nation’s leading nonprofit working to preserve affordable homeownership and revitalize communities. Our network of more than 200 affiliates provides free rehabilitation and critical repairs to the homes of low-income Americans.
HOME Ventura County - advocates for greater housing availability and affordability and we strive to educate the public about these issues. Visit the website often for news, special events, and important local issues affecting housing in Ventura County.
MCC program - Mortagage Credit Certification program: offered in each City and County unincorporated areas. The MCC is a Federal Income Tax Credit program. An MCC provides a double bonus. It increases the loan amount you qualify for and it increases your take-home pay. The MCC entitles you to take a federal income tax credit of twenty percent (20%) of the annual interest you pay on your home mortgage. Because the MCC reduces your federal income taxes and increases your net earnings, it is a great help in qualifying for your first home mortgage. But it doesn’t stop there. The MCC is registered with the IRS, and it continues to decrease your federal income taxes each year for as long as you live in your home.