The U.S. government funds a range of home repair programs.
The U.S. federal government supports low-income citizens and tribal communities to help with home repairs and modernization. Payments are offered as low-interest rate loans or as grant payments, which are not required to be repaid. Some programs help individuals purchase homes as well as renovate and repair existing properties. Does this Spark an idea?
Very-Low Income Housing Repair
The Very-Low Income Housing Repair (VLHIR) program issues loans and grants to homeowners who earn very low incomes. The United States Department of Agriculture (USDA) classifies a very low income as less than 50 percent of the median average for a given region. VLHIR funds can be used to carry out general maintenance work and renovation work to remove any health and safety threats. Loan payments are made at an interest rate of 1 percent for a duration of 20 years. As of July 2010, loan payments up to $20,000 are available. Any modernization or home repair work must be designed to make accommodation more sanitary and safe rather than for cosmetic reasons.
VLHIR grants are intended for homeowners over the age of 62 who lack the means to repay a loan. Grant payments up to $7,500 are available but may be retracted if a home is sold in the following three years.
Direct Housing Loans
The USDA administers section 502 loans, which are aimed at low-income individuals and families. Section 502 loans can be used to purchase homes or carry out renovation work in rural areas. Funds are typically used to update rural facilities to provide water and sewage facilities or to remove health and safety hazards.
Applicants for section 502 assistance should be on low or very low incomes. Low incomes are defined by the USDA as between fifty to eight percent of the average median income for a particular are, with very low incomes being less than fifty percent of the median income. Loans are made for a period of 33 or 38 years depending on an applicant's circumstances. Applicants should also have reasonable credit histories and have exhausted other loan possibilities before applying.
Indian Home Loan Guarantee Program
Section 184 payments support American Indian tribes, native Alaskan families, Indian housing authorities and organizations that support tribally designated housing. According to the Housing and Urban Development (HUD) website, Section 184 payments are intended to increase access to capital for native Americans to further home purchase and home improvements. The program was established by Congress in 1992 to increase home ownership among Native American communities. Loans can be used to purchase a property or to buy materials needed for individuals to construct their own homes. Payments are also available for families who want to carry out rehabilitation and repair work on their homes. Successful applicants are required to pay 1 percent as a loan guarantee fee, which can be given in cash or financed into the mortgage payments.
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