Rehab Housing Grants
Leaky roofs, squeaky faucets and drafty windows may not seem like such a big deal when you're first buying a home, but fixing up a house can drain your bank account fast. But don't stress yet. Whether you're just starting out or a long-time homeowner, you may be eligible for a grant to rehabilitate your home. Does this Spark an idea?
Purpose
Rehabilitation grants are offered by a variety of government and non-profit agencies for individuals to repair their homes either before or after purchase. Grants may be open-ended, offering the homeowner a sum of money to fix a wide range of items, or they may have strict regulations, stating a specific use for the money, like a new energy-efficient furnace.
Types
Housing rehabilitation grants are available from government and, in some cases, non-profit agencies at the federal, state and local levels. The federal government offers a variety of housing grants through the U.S. Department of Housing and Urban Development for individuals living in urban areas, and through the U.S. Department of Agriculture for those in more rural places.
A number of states, like California, offer grants and low-interest loans through programs sponsored by both the federal and state government, but amounts and criteria for these loans vary by state.
Local programs, such as the Homeownership Center of Greater Cincinnati, also offer grants and loans for home repair to individuals who meet their strict requirements. Check with your city and county offices to learn more about local opportunities in your area.
Qualifications and Requirements
Qualifications and requirements to receive a grant vary by program and the agency awarding the grant. Many grants through the U.S. Department of Housing and Urban Development require applicants to be either low- or middle-income families and to make below a certain income level based on their figures. Other grants, such as the Home Repair Grant offered by the U.S. Department of Agriculture, require that the applicant be over age 62.
Most agencies and programs also require that applicants live in and keep the rehabilitated residence as their primary home for at least three years after being awarded a housing rehabilitation grant.
Paying It Back
One of the best things about a grant is you never have to pay it back. Unlike loans, once you've been approved for a grant, there is no repayment schedule. This is one of the reasons why many home rehabilitation grants are more readily available to individuals who wouldn't be able to pay back a loan, like those with fixed or low-incomes.
Other Housing Rehabilitation Funding
If you're not eligible for a housing rehabilitation grant through a federal, state or local program, you may able to receive a low-interest loan. Both the U.S. Department of Housing and Urban Development and the U.S. Department of Agriculture offer loans at interest rates as low as 1 percent to individuals who fail to qualify for their grant programs.
Tags: Department Agriculture, Department Housing, Department Housing Urban, federal state, Housing Urban, Housing Urban Development
