Importance of Affordable Home Repair Loans and Grants
Updated: April 17, 2020 | Posted by: foodsupport.org | Related: Rural Housing Repair Loans
Aside from the home utilities that very low-income individuals struggling to pay, home repairs and improvements need enough finances to cover the high cost of the constructions and renovation. A hazard-free home is important to a family. However, there are various federal and private institutions that offer an affordable housing repair loans and grants. In this guide site, you will find enormous opportunity to learn the process of availing these assistances for your home repairs. You don’t have to worry; all you need to do is read the entire guide site and get the information that you need.
Importance of affordable home Repair loans and grants for very low-income earners In a country that has different season, maintaining the home is quiet difficult. Very low-income individuals’ houses suffer the worst consequences of climate change and other natural disasters. During the winter season, many low-income individuals are getting for home repair assistance.
The quality of the home affects the well-being of the household members. It also one of the factors of health conditions among children and elderly who vulnerable to hazardous material inside your home. Hence, the federal allocates enough funds to cover the expenses of home repairs while considering the health and safety living of the household.
Things to Consider in Housing Repairs
It may be costly to get your home a repair but it is necessary to avoid accidents and unexpected circumstances. Below are the things you need to consider in repairing your home.
• Specified Damage area In your home
• Calculate the expected cost of repair including the materials
• If is rented, consult your landlord
• Check for any house repair loans and grants in your local area.
Available Federal Housing Repairs loans and Grants
United States Department of Agriculture (USDA)
USDA offers grants for very low income homeowners who are residing in the rural areas. These grants would be used for certain home improvements like the following:
A. Single Family Housing Repair loans and Grants
Under this house repair assistance, very low income earners may avail the loan or the grant.
Those who will qualify to loan must be very low-income homeowners that need to repair, improve, or modernize their homes in order to remove health and safety hazards on their houses. Qualified individual who wants to loan may avail the amount up to $20,000.
This assistance is highly recommended for very-low income elderly who needs to improve their home living my ensuring the precautions and a hazard-free environment at home. The grantee may able to get an amount up to $7,500. This house repair grants mandates to improve the living conditions of the people with a fixed income or very low earners.
Who can apply for this assistance?
In order to avail this assistance, you must be:
• The homeowners and actually live in the home (needs home repair)
• Citizen of the United States
• Permanent residence of United States that was granted a (green card) status
• Financially challenge to avail affordable credit elsewhere
• The combine family income is below 50% of the area median income
• For grants, be at aged of 62 or older and verified to be financially unable to repay a conventional home repair loan.
What areas are covered for this program?
The Single Family Housing Repair loans and Grants of the USDA are basically eligible to the very-low income homeowners residing in rural areas across the 50 states of the U.S. The eligible community must have a less than of 35,000 populations. On the web page of the agency, interested applicants may check their address for eligibility, limits, loans and grants.
Terms of Loans and Grants
Other than the conventional way of home repair loans, USDA loans ensures that the loan is very affordable for the very-low income household. The loan interest rates are fixed at 1% and can be repaid over the period of 20 years. This is above attractive compared to the high interest rate of conventional home repair loans with over 4.5%. For the loan of $7,500 or more, a full title service is mandatory. This Title service fees are costs related to the issuance of the title insurance policy for the lender. On the other hand, grants have a lifetime limit of $7,500 and don’t have to be repaid except if the house is sold less than 3 years after availing the grants.
Process of application
You can initially start your application by visiting your local USDA home loan specialist. He or she will guide you on the process of the application. You can also verify if you are eligible for the programs and the requirements that you need to comply. The processing time of the loans and grants may vary from different states. Hence, it also depends on the availability of the funds. You don’t have to worry on the deadline of the application since it is funded by the congress on the annual federal budget; the program is an all-year round home repair assistance.
Other alternative Home Repair Loans and Grants
Aside from the Single House Repair loans and Grants of USDA, there are available federal grants that can be avail by affected very-low income individuals:
Disaster Recovery Assistance- HUD offers financial assistance to eligible individuals especially very-low income household who are victims of natural disasters. The program will help on the construction, renovation and repair of the devastated houses in the area. It is administer by the local government and holds the responsibility to guarantee a hazard-free home for the constituents.