In 2021, the house flipping craze is still in full swing. Home improvement loans and grants can help take the stress out of the renovation process. But did you know some of these home renovation grants can help with more than just “flipping?”
Whether you want to build your own house from the ground up or just need to make a few necessary repairs, you may qualify for government assistance to help you pay for these costs. A home renovation grant is free money; you do not need to pay it back. A loan, on the other hand, is money you borrow to make repairs and must repay, usually in monthly installments. Continue reading the slides below to explore all your options for renovation assistance.
The U.S. government offers several home improvement loans and grants to low-income individuals and families who need to make essential repairs to their homes. The Section 504 Home Repair Program, also known as the Single-Family Housing Repair Loans & Grants program, provides both loans and grants to those who qualify.
The U.S. Department of Agriculture (USDA) Rural Development branch operates this program. If you qualify for a home renovation grant or loan through this program, you can use the money in a variety of ways.
The way in which you use the funds depends on whether you receive a loan or a grant. Home improvement loans from the Section 504 program can be used to repair, improve or modernize homes or remove health and safety hazards. This includes improvements such as:
- Making the home more energy-efficient.
- Fixing foundation issues.
- Repairing leaky roofs or gutters.
- Improving the insulation.
Home improvement grants, on the other hand, are solely meant to be used to remove health and safety hazards for elderly homeowners. This could include:
- Improving steep staircases.
- Installing safety features, like home cameras and alarms.
- Installing other features that improve mobility and accessibility, like a stair lift.
To qualify for the Section 504 Home Repair Program, you must meet certain qualification criteria and live in an eligible area. The program is operated at the federal level, but individual states may have different rules and requirements.
There are limits to both home renovation grants and improvement loans. The maximum loan amount you can receive is $20,000, while the maximum grant amount is $7,500. If you qualify for both options, it is possible to receive both a loan and a grant at the same time for up to $27,500 in assistance.
Some rural homeowners who live in certain states could qualify for a higher loan and grant amounts depending on their income and their state. Continue to the next slide to learn more about how to qualify for this program.