Some parts of the country has been severely impacted by hurricanes Harvey and Irma, leaving many homeowners to rebuild what was left of nature’s wrath.
While many of these homeowners require full property rebuilding, some have been lucky enough to have their precious homes left largely unharmed, requiring only some repairs.
Still, repairs can be a hefty expense. A few minor structural changes alone can already cost you a few thousand dollars in one repair job.
In such situations, it pays to know and be familiar with some of the available funding and financing options that you can tap into, in case you are one of the majority of Americans who have little to no savings in their name.
Whether your intent is to repair, renovate, or improve, these options are worth exploring.Thinking about buying a home in the rurals? Talk to us.
A grant is basically money given to a recipient (i.e. upon meeting certain standards) that does not need any repayment. Grants are often given by federal, state, and local government institutions typically to promote certain causes.
The people’s taxes are funneled into grants so grant programs often come with strict guidelines and rules before they can be given to any entity.
For homeowners, a home improvement grant is made available by Housing and Urban Development (HUD) office to help those who can’t afford to fund a major home repair or renovation necessity.
Other groups such as the National Residential Improvement Association (NRIA) also offer such grants.
Are you eligible for a home repair grant?
The HUD, via the US Department of Agriculture, provides home improvement grants to individuals who meet the following criteria:
- The application must own and occupy the property;
- Is 62 years old and above
- He or she must be unsuccessful in obtaining affordable credit options from other sources; and
- Meet income limitations.
A grant of up to $7,500 is awarded by the department to successful applicants. This is a one-time, lifetime grant and cannot be used to pay for cosmetic improvements on the property.
The USDA only allows the use of grant money to repair identified health and safety hazards in the home. The fund can also be used in making the home more handicap-accessible, a repair purpose that is common among seniors who choose to settle in their homes for retirement.
Other permitted functions include emergency repairs or protection against weather related issues.
The HUD makes these programs possible through the HOME Investment Partnerships Program which is specifically designed to cater to the needs of low income homeowners.
What if I’m not eligible?
If, after the deliberations, you were not able to meet eligibility standards, other financing options are still available as a last resort.
These options often come in the form of low-cost loans.
As opposed to a grant that does not require any repayment, low cost loans offered by the same agencies as the USDA and HUD has interest and due periodical repayments. However, these programs which also target low-income borrowers usually carry very affordable rates.
The US Department of Agriculture has established a variety of financing programs that seek to help many of the country’s economically-challenged individuals and families get the financial support and backing they need especially in the time of disturbing weather events.
While many of these programs are very audience-specific, it does offer a tremendous help for those who qualify for the aide.Click to See the Latest Mortgage Rates»