The U.S. Department of Housing and Urban Development (HUD) and the U. S. Department of Agriculture (USDA) each provide federal home-improvement loans and grants through various programs. Some of these programs include the Title I Home Improvement Loan, the 203(k) Rehabilitation Loan and the Rural Housing Repair and Rehabilitation Loans and Grants. Eligibility requirements for these federal home improvement loans and grants vary depending on the program and the state in which the program is administered.
Uses
Federal home-improvement loans and grants are provided to homeowners who need to repair or rehabilitate their residences, typically at lower interest rates than other types of loans. The amount of repairs you are allowed to make varies depending on the home-improvement loan program that you use. Some federal home-improvement programs allow only necessary repairs, while others allow you to rehabilitate your home however you like.
Title I Home Improvement
HUD has approved lenders that provide Title I home-improvement loans for making moderate home repairs. To be eligible, you must have good credit, the ability to repay the loan and have occupied your dwelling for at least 90 days. The maximum amount of the loan is $25,000 for single-family homes, $17,500 for a manufactured house on real estate property (property you lease out and receive income from), $7,500 for a manufactured home on your personal property and up to $60,000 for a multi-unit structure.
203 (k) Rehabilitation Program
The 203(k) Rehabilitation Program allows you to finance a home purchase and the cost to repair it into one loan or to finance repairs on an existing home. To be eligible, a residence must be at least a year old and home repairs must total at least $5,000. Repairs can include making your home energy efficient, flooring and roof repairs, modernizing your home and landscape improvements.
Rural Housing Repair and Rehabilitation Loans and Grants
The Rural Housing Repair and Rehabilitation Loans and Grants Program provides loans for rural residents with low income to cover the cost of updating and repairing their residences to a safe standard at an interest rate of 1 percent. The loan can be up to $20,000. The program also provides grants to seniors age 62 and over for home repairs. Grant amounts are for up to $7,500.
Warning
When you're trying looking for a lender, search the HUD website for HUD-approved lenders. On the HUD website (see Resources section), you can search by state, lender name or home-improvement program type to find a list of lenders that are HUD approved.
Tags: home repairs, home-improvement loans, Housing Repair, Housing Repair Rehabilitation, Rehabilitation Loans