The Federal Housing Administration (FHA), a division of the U.S. Department of Housing and Urban Development, better known as HUD, insures loans made by private lenders against consumer default
This is done with the intention of making it easier for families to borrow money to make home modifications, which can enable a frail senior to age at home, rather than in an institution
To be clear, HUD does not subsidize these loans, which are commonly referred to as Title I loans.
Rather, they provide insurance, enabling approved private lenders to offer loans to individuals with a wider range of credit scores who might otherwise not be eligible.
It is worth noting that HUD also provides Community Development Block Grants CDBG to local communities and cities that may in turn make those funds available in the form of grants to eligible seniors
The reason for this is that seniors in poor health with fixed incomes are less than ideal candidates for these loans, as they have limited ability to re-pay them.
In the context of care for the elderly, these loans are often used to make the home more accessible to vulnerable individuals.
One can widen the doorway and add a front door ramp to accommodate a wheelchair. Or one can take a shower or walk in tub in a bathroom with handrails and a seating area
On the HUD webpage, one can find a HUD approved lender by using the search tool. More information about this program is available here.