If you are making plans for remodeling your home, you probably know how costly the work can be. It often runs into thousands of dollars and can eventually exceed even the most generous budget. However, there are grants and loans available for homeowners who remodel so why not find out what's available before you begin your project?
The US Department of Housing and Urban Development offers Title 1 home improvement loans. These aren’t grants as such since they need to be repaid but the terms are very favorable. However, where the loan is over $7,500 it needs to be secured with a deed of trust or mortgage. The house must already be completely built and occupied for 90 days before you even apply for the loan and you’ll need good credit.
If you qualify, money is available up to $25,000 for a single-family home and up to $60,000 for multi-family units. HUD can also direct people to grants that are available. To do this, you need to register with their grants site although these loans are more for organizations and small businesses.
The Department of Energy makes money available to people who want to weatherize their homes when remodeling. However, to qualify, your income needs to fall within certain guidelines. This money is aimed at those on low incomes to help them reduce their energy bills by insulating their houses or putting in new windows.
The grants actually come from the individual states and you need to apply through the relevant local authority rather than applying to the DOE. If you’re hoping to start remodeling your home but you’re on a low income, there’s the low income home energy assistance program, or LIHEAP, which can offer money for insulation and other items that will improve the energy efficiency of a home.
The Federal Emergency Management Agency might not seem like a source of remodeling grants, but they do have money available for homeowners who’ve been through a natural disaster to help them rebuild and remodel their homes. Their grants not only cover the damage to the property as you rebuild, but even help to provide items that go inside the house.
There are grants available specifically to Native Americans. If you’re Native American and thinking of remodeling your home, the Indian Block Housing Program can prove useful. You will need to be a member of a recognized tribe. This is more about providing housing for tribal members but the program can include improvement of properties to make them habitable.
The Indian Home Loan Guarantee Program is also for individuals who are members of tribes. It’s not a grant but a loan, and can be used for home improvement as well as for new construction.
The US Department of Agriculture has low interest (1 percent) programs for those who live in rural areas. It’s aimed at those with low incomes so they can make home improvements to enjoy a safe and sanitary house.