Federal programs are available to help pay for home repairs.
If your are seeking to buy a house or already are a property owner, you may need money to make repairs to the house. Home repairs can be costly and many homeowners refinance their mortgages or take out loans to pay for them. If you need help with repairing or renovating your home, the federal government offers loans and grants. Does this Spark an idea?
Rural Repair and Rehabilitation assistance
The U.S. Department of Agriculture Rural Development office has programs to help very low-income older homeowners improve or repair their homes. The work must make the home safer and more sanitary or remove health and safety hazards. Eligible homeowners can apply for loans of up to $20,000, with 1 percent interest for up to 20 years. Grants of up to $7,500 are available only for work that removes health and safety hazards. Grants and loans may be combined for up to $27,500 in aid. To qualify, a homeowner must be 62 years or older, and have income that's below 50 percent of their area's median income. The homeowner also must be unable to pay for the project or secure a loan from other lenders.
Indian Home Loan Guarantee Program
The U.S. Department of Housing and Urban Development (HUD) offers a guaranteed loan program for Native Americans. Created in 1992 to help more Native Americans own homes, the program backs mortgage loans made by private lenders to Native Americans and Native Alaskans. The loans offer a low down payment, no monthly mortgage insurance and flexible underwriting. Loans may be used for purchase, rehabilitation, construction and refinancing of single-family homes; the home must be the applicant's principal residence. To qualify, the loan must carry a fixed rate and a maximum term of 30 years.
Rehab a Home Program
HUD has developed home repair programs to help restore the nation's housing stock. The 203(k) program is HUD's primary avenue for owners wanting to repair and rehabilitate one- to four-family homes. A major benefit of the 203(k) program is that the borrower can get a single loan to pay for both purchase and rehabilitation of a home. Eligible properties are one- to four-family homes that have been completed for at least a year. Loans may be used to convert single-family homes into up to four units, or small multifamily properties to single-family use. Individual condos in FHA-approved buildings are also eligible for these loans. A 203(k) loan can also be used to buy a home on another site, move it to the mortgaged property and rehabilitate it. No "luxury" renovations or improvements, such as swimming pools, are allowed. As part of the qualifying process, appraisals must be done to determine the value of the home before and after the proposed improvements. Interested homeowners should speak with a FHA-approved lender in their community.
Tags: Native Americans, four-family homes, health safety, health safety hazards, Loans used
