Home improvement grants are available to low-income families and affordable housing developers.
The U.S. Department of Housing and Urban Development and other federal agencies provide home improvement grants to low-income families. These grants help low-income households make needed repairs to their property, or help to upgrade systems to make them more energy efficient. To qualify for a grant, you must meet HUD's low-income limit level. A HUD-approved housing counselor can help you determine whether you meet income and other eligibility requirements for a home improvement grant.
USDA Home Repair Grant
The Department of Agriculture provides home repair grants to low-income seniors over the age of 62. The senior can apply for a grant up to $7,500 to correct health and safety concerns on the property. To qualify for a grant, the homeowner's income cannot exceed 50 percent of the area's median income. These grants are for homeowners who live in rural areas of the country. The homeowner may have to repay the grant if she sells the home within three years of receiving the money.
Neighborhood Stabilization Program
HUD provides Neighborhood Stabilization Program grants to local governments and nonprofit agencies to purchase and rehabilitate foreclosed homes. The goal of this program is to stabilize neighborhoods that have been impacted by blight and abandonment. The agency rehabilitates the home and puts it on the market at an affordable price. Households with low-to-moderate income are eligible to purchase these NSP homes. These grant funds are not directly available to home buyers. You must contact your local government or nonprofit agency to apply for help.
American Dream Downpayment Initiative
HUD's American Dream Downpayment Initiative provides $10,000 or 6 percent of the purchase price of a home for first-time home buyers to buy and rehabilitate. The total household income cannot exceed 80 percent of the area's median income to qualify for help. The rehabilitation must be in conjunction with purchasing a home for buyers to obtain the grant. Also, the repairs must be made within one year of receiving the grant funds. Single family homes, condominiums, cooperatives and manufactured homes are eligible for home improvement.
Weatherization Assistance Program
The Department of Energy's Weatherization Assistance programs helps low-income families reduce the costs of their utility bills with energy-saving systems and appliances. The average savings per household is $437 annually. Families with income at or below 200 percent of the federal poverty level are eligible for the weatherization program. Typical home improvement measures include installing insulation, repairing or replacing heating and cooling systems, and upgrades to energy-efficient lighting and appliances. Weatherization grants of up to $6,500 per household are provided to single family residents and low-income housing landlords.
Tags: home improvement, home buyers, low-income families, American Dream, American Dream Downpayment, area median