HUD insures home-repair loans.
The U.S. Department of Housing and Urban Development helps expand the opportunity to own a home and revitalizes communities through various home improvement programs. The agency insures HUD-approved lenders against losses on loans made to low- and moderate-income borrowers. Repairs made to HUD-insured homes must comply with all local codes and ordinances and HUD's minimum property standards. Does this Spark an idea?
Federal Housing Administration Loans
The Federal Housing Administration (FHA), an agency within HUD, offers several loan programs to pay for home repairs. These loans include the Section 203(k) rehabilitation loan, the Title I property improvement loan and the Energy Efficient Mortgage (EEM) program.
Section 203(k) is the department's primary program for rehabilitation and repair of single-family properties, according to HUD. It combines purchase and rehabilitation costs into a single mortgage with a long-term interest rate.
The Title I program insures loans that finance light to moderate rehabilitation of properties, according to HUD. Homeowners can get up to $25,000 to make improvements to a single-family home. The fixed-rate loans have terms of up to 20 years.
The EEM helps buyers save money on utility bills by funding energy-efficient and cost-effective renovation projects. EEMs may be used to purchase or refinance a principal residence, and incorporate the cost of improvements into the mortgage, according to HUD.
Section 184 Loan Guarantee Program
The Section 184 Indian Home Loan Guarantee Program is a HUD-administered mortgage "specifically for American Indian and Alaska Native families, tribes, Alaska Villages or tribally designated housing entities," according to HUD. The program was created in 1992 to improve housing opportunities for Native communities. Loans can be used to purchase and/or rehabilitate manufactured homes or existing single-family properties that have one to four units. Homeowners also can refinance their mortgages with Section 184 loans. The loan term is up to 30 years.
USDA Loans and Grants
The Very Low-Income Housing Repair program provides home improvement loans and grants to very low-income homeowners. Lenders originating these loans must be HUD-approved and the agency providing the grant must have HUD approval. If the money is used to improve a manufactured home, it must meet HUD guidelines for construction and safety.
The loans and grants can be used to repair, improve, or modernize dwellings, or to remove health and safety hazards, according to the the U.S. Department of Agriculture, which administers the program. Loan applicants can receive up to $20,000. Grants, only available to homeowners age 62 or older, are awarded up to $7,500.
To be eligible, homeowners must occupy the property as their primary residence, have income that's 50 percent less than the median income for their area, and be unable to qualify for affordable credit elsewhere, according to the agency.
Tags: Federal Housing, Federal Housing Administration, Guarantee Program, home improvement, Housing Administration, Loan Guarantee, Loan Guarantee Program
