The government can pay for home improvements in some cases.
Improvements to your home can add value to the property and make your daily living more comfortable. Whether you plan to add a room, weatherize the entire structure or repair the roof, the expense of home improvement can be startling. Depending on your income, there are several government-funded home assistance programs that can help.
Hud Grants
The U.S. Department of Housing and Urban Development provides rehabilitation assistance for dwellings consisting of one to three units. If approved, the 203(k) program pays for the rehabilitation of a razed house. It can also be used to convert a single-family dwelling to a multiple-family dwelling as long as the completed project has no more than four units. In addition, program funds are available to reduce a multi-unit dwelling to a single-family home. This program is provided through the mortgage lender when you choose a home to purchase that needs major improvements to become livable.
Hud Exclusions
The 203(k) program is designed to complete massive rehabilitation projects of homes; however, it does not cover luxury items. Decks, painting and swimming pools are examples of items the program will not cover.
Rural Rehabiliation Loans
The federally funded rural repair and rehabilitation program money must be used to modernize the home, improve on it or make needed repairs. The loan funds must be used to repair or remove safety hazards or to make the home accessible to disabled dwellers.
If approved, you will be given a loan of up to $20,000. You can also apply for up to $7,500 in grant funding to complete your repairs. The loan terms are 20 years at 1 percent interest. Grants must be repaid if you sell your home within three years of receiving the money. You are allowed to apply for a total of $27,500 between the grant and loans.
To qualify for the program, you must be unable to qualify for conventional credit assistance and have an income that is less than 50 percent of the average American income as defined by the federal government. You must be at least 62 years old and must reside in the home. The money must be used to make repairs or improvements.
Federal Weatherization Assistance
The Weatherization Assistance Program gives low-income homeowners funds to make energy-efficient improvements to their homes. The premise is that an energy-efficient home will have lower power bills. Examples of approved improvements include weather stripping around doors and windows, replacing window glass with energy efficient products and servicing the home's HVAC system. Program funds are provided by the U.S. Department of Energy, which reports an average annual savings of $437 per family.
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