Home Improvement Grants – Federal Grant Money to Modernize Your Home

The federal government provides a number of programs designed to assist citizens with home and house repairs. One of the programs administered through the US Department of Agriculture Office of Rural Development offers grants and loans to owner-occupants of very low-income housing for home improvement and repairs. Known as Section 504 loans and grants the program was authorized by the Housing Act of 1949.

The program provides loans for general repairs to the owner’s property and the funds primarily directed at alleviation of health and safety issues. Home Improvement Grants are also awarded for the removal of safety hazards and for remodeling projects that make the dwellings more accessible to those with disabilities. The loan or grant funds can also be used for general modernization of the property.

Generally the grants and loans are made for infrastructure improvements to the property’s heating, electrical or plumbing systems. Particularly given the current emphasis on energy conservation and green projects, many of the awards are focused on weatherization of the low-income properties.

Since these grants and loans are administered by the Department of Agriculture the program is primarily aimed at rural low-income areas. To be eligible for this program the dwelling must be in an rural area with a population of less than 10,000. In some cases the eligibility expands to areas with up to 25,000 people when the community is not included in a Metropolitan Statistical Area.

Loans range up to $20,000 for eligible individuals and carry an interest rate of one percent with up to a 20 year term for repayment. Grants can go as high as $7,500 and as the term implies do not have to be repaid.

To be eligible for grant funding the home owner must be over 62 and not have the capability to repay a loan.

The Department of Agriculture Website provides access to maps and income calculators to help determine dwelling and income eligibility for the Very Low-Income Housing Repair Loans and Grants program.

Home Improvement Grants – Free Money

Government home improvement grants can help you pay for the funds you need to repair, expand or fix your house. As long as you use the funds for the approved expenses, these cash grants never have to be repaid. These funds may be obtained to help you pay for the cost of materials, labor, and even drawing up plans. As a result, you can increase your home’s value by potentially not spending any money out of pocket.

Why would there be free government home improvement grants available? For one, by providing people with the money they need to fix their houses, not only do they increase the property value of their own home, but they increase the property value of the entire community. As a result, the government can appraise houses in the area at a higher value, which means more tax income. While you get this free government grant money for free, the government does see a return on their investment in the long run.

There are also many private foundation home improvement grants provided by organizations. By offering you these funds, not only do these businesses and organizations promote community development, but they receive tax incentives and write offs for their own business. In other words, they are motivated to give free grant money away.

As you search through the grant database by using the links below, you’ll quickly be able to find and apply for the grant that are most relevant to you. When you qualify, you’ll receive thousands of dollars in free grant money for your personal use, and you’ll never have to pay back.

What Are Government Home Improvement Grants?

The United States Federal Housing Administration has realized the need of homeowners to rehabilitate their houses. This is why they have devised a way to help individuals get the finances that they need by way of grants and special loan programs.

With the help of the United States Department of Housing and Urban Development, they have made these grants available to eligible individuals. It should be noted that they do not fund these grants themselves. They have simply made a resolution which ensures both the lender and the grantee the government home improvement grants to be secured. This means that the accredited lending institution will be insured from the risk of default. They have set guidelines as to how a grant should be based upon, including the cost and the terms of payment. The lender determines the amount of the loan to be granted as well as to impose the interest based on the current market rates.

An eligible individual would be the owner of the property, a person who is in the process of purchasing a piece of real estate under a land installment contract or an individual who is leasing the property (provided that they meet the terms and conditions). The government home improvement grants can be used to rebuild a home damaged by calamities. They can also use these to remodel the home to accommodate new members of the family. And these can even be used to preserve ancestral or family homes which have been exposed to wear and tear through generations.