Source: U.S. Department of Housing and Urban Development; USA.gov
HUD has several programs designed to help you purchase a home if you qualify.
One part of HUD, the Federal Housing Administration (FHA), insures mortgages, which makes it easier for buyers to become homeowners thanks to less strict eligibility requirements. The program is popular witelh first-time home buyers but not limited to them.
Eligibility for an FHA loan depends in part on your ability to post a down payment of 3.5% of the purchase price and have a credit score of at least 580. You must also make sure the home is priced within the loan limit for an FHA home in its location.
To apply for an FHA loan, you must find an approved FHA lender because the FHA doesn't lend the money itself. If you have good credit and the ability to pay 10% to 15% down, you may find a conventional loan is less expensive than an FHA-insured loan.
The HUD homeownership voucher program lets low-income families in the HCV program, including those in public housing, use their vouchers to meet monthly mortgage payments and other expenses when buying a home for the first time. Contact your local PHA to find out if your PHA offers this program.
The Department of Veterans Affairs (VA) offers home loan programs to active-duty service members, surviving spouses, and veterans. VA loans are provided by private lenders, with the VA guaranteeing a significant portion of the loan. A certificate of eligibility (COE) is required and can be applied for through the Department of Veterans Affairs.
This table compares basic eligibility requirements for various government homeownership programs, including FICO credit score and debt-to-income ratio requirements.
| Program | FICO Credit Score | Debt-to-Income Ratio | Primary Residence |
|---|---|---|---|
| FHA | 500 or higher | 50% or less | Yes |
| Housing choice voucher (HCV) | PHA (Public Housing Agency) decision | PHA decision | Yes |
| Active-duty/veterans | 620 by lender | 41% | Yes |
Source: U.S. Department of Housing and Urban Development; U.S. Department of Veterans Affairs
Pros of Government Homeownership Programs
- Requires low or no down payment
- Permits those with lower credit scores to qualify
- Does not require mortgage insurance for VA loans
- Provides help for first-time buyers
Cons of Government Homeownership Programs
- Imposes higher mortgage insurance costs (except VA loans)
- Includes restrictive government property standards
- Is limited to primary residences
Food Assistance Programs
From emergency food needs to ongoing nutrition assistance, the federal government, in partnership with states, offers free and low-cost food programs for families and individuals.
Immediate Aid
If you need food quickly, the USDA maintains a National Hunger Hotline—866-3-HUNGRY (866-348-6479)—with information and eligibility requirements available in English and Spanish. The hotline, which will connect you with emergency food providers, government programs, and social service agencies, operates Monday through Friday from 7 a.m. to 10 p.m. Eastern Time.
Supplemental Nutrition Assistance Program (SNAP)
SNAP (previously called food stamps) helps needy families supplement their food budget to move toward self-sufficiency. Eligibility is determined by individual states that administer the program. You apply in the state where you live by contacting your state agency.
Some states allow online applications, while others require your physical presence.
Special Supplemental Nutrition Program for Women, Infants, and Children (WIC)
WIC provides low-income women and their young children with healthy food, nutrition counseling, and referral to health, welfare, and social services agencies. WIC is a federal grant program administered by the government through 89 WIC agencies and approximately 47,000 authorized retailers.
To be eligible, the mother must be pregnant, nursing, or postpartum (up to six months after birth) with infants (up to a year old) or children (under the age of five). There are additional income requirements posted on the WIC FAQ web page.
Food Programs for School-Age Children
Programs for school-age children include the National School Lunch Program (NSLP), the School Breakfast Program (SBP), and the Summer Food Service Program (SFSP). Eligibility requirements for all three programs are the same. If your family income falls below 130% of the federal poverty guidelines, your child is entitled to free food. If income is between 130% and 185% of guidelines, prices for meals are reduced.
Food Programs for Older Adults
The federal government sponsors two programs designed to get food to low-income older adults. The Senior Farmers' Market Nutrition Program (SFMNP)offers coupons to purchase fresh fruits, vegetables, honey, and herbs at farmers' markets, roadside stands, and farms.
The Commodity Supplemental Food Program (CSFP) provides healthy food every month. You must be 60 years of age or older and live in an area that offers either program to apply. Both programs have income limits. For more information, use the USDA's state contacts list.
Pros of Government Food Programs
- Provides nutritious food at no cost
- Improves dietary intake for vulnerable populations
- Reduces food insecurity for children
- Reduces medical costs for adults, children, and older adults
Cons of Government Food Programs
- May impose potential social stigma for recipients
- Can include varying consistency and quality aross different states
- imits what products can be purchased
- Mandates work requirements, which may be difficult for adults with children
The table below lists eligibility requirements for federal food programs.
| Program | Eligibility |
|---|---|
| SNAP | Must meet state-set guidelines |
| WIC | Women: Pregnant, breastfeeding, or postpartum; Children: Under five years old. Must meet additional WIC requirements |
| NSLP, SBP, and SFSP | Less than 130% of poverty guidelines: Free meals; 130% to 185% of poverty guidelines: reduced-price meals |
| CSFP | 60 or older and must meet state guidelines |
Source: U.S. Department of Agriculture
Healthcare Programs
Six major government healthcare programs provide medical coveragene for low-income and older Americans, children, veterans, and those who have recently lost their jobs.
Medicare
Medicare is a federal health insurance program primarily for those 65 and older. Medicare is commonly divided into four parts. Medicare Part A covers for inpatient hospital stays and nursing care. Medicare Part B covers doctor's visits, tests, flu shots, physical therapy, and chemotherapy. Medicare Part C, otherwise known as Medicare Advantage, is Medicare Parts A and B coverage provided by a private insurer. Medicare Part D is Medicare's prescription drug benefit program, which is an optional benefit administered by private insurance companies.
Medicare is funded through a combination of payroll taxes and participant premiums, deductibles, and copays. Employees and employers each pay a 1.45% tax on all income, making the total Medicare tax 2.9%. If individuals earn over $200,000, they pay an additional 0.9%. This tax is levied only on employees, not employers.
Medicare's resources are pooled into trust funds: the Hospital Insurance Trust Fund, which funds Part A, and the Supplemental Medical Insurance Trust Fund, which is funded by premiums and other income, and pays for Parts B and D.
If you are still working and covered by employer health insurance when you are three months away from your 65th birthday, discuss your Medicare options and requirements with your human resources department. You can also consult "How to Apply for Medicare Only" on the Social Security website.
ACA Health Insurance Marketplace
Healthcare.gov is home to the Health Insurance Marketplace, created by the Affordable Care Act (ACA), an Obama administration program designed to make affordable health insurance available to uninsured Americans. Anyone who doesn't have health insurance can obtain coverage through the Marketplace. Those who fall below certain income limits can receive subsidies that lower the cost of coverage.
The Marketplace normally has an annual enrollment period to obtain or change coverage. For 2024, open enrollment begins November 1, 2023 and runs through January 16, 2024.
Medicaid and CHIP
Medicaid and the Children's Health Insurance Program (CHIP) are related but have slightly different requirements. Medicaid is for low-income families and individuals. CHIP is for dependents under age 19 whose parents earn too much to qualify for Medicaid but not enough to pay for private health insurance coverage.
Both programs are federally funded in part and run at the state level. Each state has its own rules but must follow federal guidelines. You can apply for Medicaid and CHIP through the ACA Health Insurance Marketplace or your state Medicaid agency.
Veterans Administration Healthcare
The primary criteria to receive VA healthcare benefits are that you be a military veteran or former member of the National Guard or Reserve who served on active duty and was not dishonorably discharged. Specific eligibility depends on when you served and for how long. The rules are complicated but well explained on the VA's website.
COBRA
Health coverage under the Consolidated Omnibus Budget Reconciliation Act (COBRA) is mandated by federal law for employees (and their dependents) when they lose their job or experience a reduction in work hours. One huge downside to COBRA coverage is the cost. When you lose your job, whatever amount your employer was contributing toward your health insurance goes away, and you have to pay the entire cost yourself.
Pros of Government Health Care Programs
- Improves public health
- Prevents medical bankruptcies for vulnerable populations
- Boosts the economy due to savings
Cons of Government Health Care Programs
- Increases government debt
- Has potential for abuse
- Reduces free market competition
- May require long wait times for service
State Health Department Programs
State health departments offer programs in addition to those available at the federal level. Use the USA.gov state health departments link to find out what is offered in your state, information about eligibility requirements, and how to apply.
Retirement Programs
The primary government retirement programs are Social Security for most citizens 65 and over who qualify through their work history and the Federal Employee Retirement System (FERS) for certain government employees who are not covered by Social Security.
Social Security Retirement Benefits
If you have paid into the Social Security system for at least 10 years, you can apply for Social Security retirement benefits for yourself or as a spouse if you meet the following four requirements:
- You are at least 61 years and 9 months old.
- You are not currently receiving Social Security on your work record.
- You have not already applied for benefits.
- You want benefits to start no more than four months in the future.
You can also apply for Medicare when you apply for Social Security if you are within three months of age 65.
Federal Employees Retirement System (FERS)
FERS, which replaced the Civil Service Retirement System (CSRS) in 1987, provides benefits to civilian government workers through three programs: a Basic Benefit Plan, Social Security, and the Thrift Savings Plan (TSP).
Eligibility for FERS benefits is determined by your age and number of years of service. The CSRS and FERS planning and applying websites provide complete information depending on how close you are to retirement.
Tax Filing Assistance Programs
The Internal Revenue Service (IRS) sponsors several tax-assistance programs to make federal and, in some cases, state tax filing easier and possibly free.
Free File
If your adjusted gross income (AGI) is $73,000 or below, you can file federal, and in many cases, state returns, online at no cost. The process and what you need to have to file are all explained in this Free File infographic. You can get help choosing a product using the Free File Online Lookup Tool.
With income above $73,000, you can still use the Free File Fillable Forms tool to prepare your taxes as long as you are comfortable doing your taxes yourself and don't require assistance. The fillable forms tool lets you file electronically but does not include state forms.
VITA and TCE Tax Filing Assistance Programs
The IRS has two in-person tax assistance programs: the Volunteer Income Tax Assistance (VITA) program and the Tax Counseling for the Elderly (TCE). Both offer free tax-preparation assistance to qualified individuals. VITA generally applies to you if your income is $60,000 or less, you are disabled, or you have limited English-speaking skills. TCE is for citizens aged 60 or older.
You can find VITA and TCE program sites using either the IRS TCE/VITA locator tool or the AARP Foundation Tax-Aide site locator tool.
Financial Assistance Programs for Small Businesses
Small businesses are the beneficiaries of several long-standing government assistance loan programs, most of them originating from the Small Business Administration (SBA).
U.S. Department of Agriculture (USDA)
The USDA offers several programs aimed at all sectors of the agricultural community. Programs include farm loans, housing assistance, loans and grants for rural economic development, loans for beginning farmers and ranchers, livestock insurance, and more. Detailed information on all USDA programs, including how to apply, can be found on the USDA Grants and Loans program web page.
Small Business Lending Fund
The Small Business Lending Fund (SBLF), created as part of the Small Business Jobs Act of 2010, is a dedicated fund that provides capital to community banks and community development loan funds (CDLFs) to encourage those organizations to lend to small businesses. Frequently asked questions about this fund can be found on the U.S. Treasury Small Business Lending Fund website.
Pros of Government Business Programs
- Offer lower interest rates
- Offer favorable repayment terms
- Require less collateral
- Require low or no down payments
Cons of Government Business Programs
- May only offer small loan amount
- Imposes long approval
- Often requires personal guarantees
Watch Out for Scams
People looking for government assistance sometimes come across ads for free government grants. However, the government does not award grants to individuals. It only awards them to states, universities, and other organizations. Anyone who suggests otherwise is probably running a scam. If you receive such an offer, the Federal Trade Commission (FTC) suggests the following dos and don'ts:
- Write down the phone number.
- Register at the National Do Not Call Registry.
- File a complaint with the FTC.
- Don't give out bank account information.
- Don't pay out any money.
- Don't believe a caller or an email just because it claims to be from the government.
What Government Assistance Is Available in the U.S.?
There are many government assistance programs available in the U.S. Some of these are Temporary Assistance for Needy Families (TANF), Supplemental Nutrition Assistance Program (SNAP), Veterans Administration Healthcare, and food program waivers. Spending time researching what programs are available in the areas where you need assistance could help ease your financial burden.
How Can I Get Financial Help Immediately?
If you are in need of urgent financial help, there are a number of government programs that can provide it quickly. These include food assistance (USDA National Hunger Hotline), money to help with utility bills (Emergency Home Energy Assistance Program benefits), and housing assistance (Emergency Housing Voucher Program).
Will Student Loans Be Forgiven?
In August 2022, President Biden announced a plan for student loan forgiveness for up to $20,000 in federal loans per borrower. However, federal courts have issued orders blocking the student loan forgiveness plan. Consequently, the administration declared its intention to pursue alternative legal pathways for student loan forgiveness while also changing Department of Education rules to relieve the burdens for student borrowers.In April 2024, the administration announced new members to reduce student loan debt for up to 30 million borrowers.
The Bottom Line
There are many federal and state government assistance programs available to individuals and businesses. If you need assistance, the links above will help you obtain more information about programs you may qualify for and how to apply for them.
