How to fund a Home Improvement Project through a Loan or Grant Program

Thinking about some home improvements? Have you looked into the costs yet? Investing in your home is a great idea, but it can get pricey depending on the project you are intending to approach. Many homeowners would love to reinvest in their home to increase the overall value of their property, but between mortgage payments, utilities and other bills, they may not have the upfront money it would require to get a project started. How about a loan for home improvement? Let’s take a moment and look at some available options.

Check with you local and state governments first

The first place you might want to look for help might be the government because they have a wealth of potential options.

• The Department of Housing and Urban Development offers mortgage insurance programs for homes that need some work done to them. They fund loans and grants for general repairs.
• The Department of Economic and Community Development can offer you a loan if you make home improvements that lead to energy conservation's  lead paint abatement or emergency home repairs.
• You may be able to find help through the USDA, or the Department of Veterans Affairs. They offer loans and grants for home repairs respective to the town where the home is located. They also help disabled veterans with home repair and improvement projects.

State and Government Programs designed for your specific needs

State and Federal Government home improvement loans are designed to help people fix or improve their homes. These can be from state programs like a rehabilitation mortgage program available to low and moderate income people to purchase or refinance homes in need of repair. DECD funds several programs for your own personal home repairs. If you are attempting an energy conservation project like new insulation or furnaces, they offer low interest loans. Some state programs such as Homeowner Emergency Repair Assistance for Seniors Programs will offer low interest loans to repair homes for low income homeowners who are at least 62 years old. Homeowners can also abate hazardous materials from their home such as lead-based paint and asbestos. This can all potentially be funded by the government.

Ask the FHA for help

Check in with the Federal Housing Administration which is part of HUD. The loans you might receive through these programs come through FHA approved lending institutions. HUD will insure these loans, but HUD does not make direct loans to help people buy homes. Although there are home improvement loans for people with bad credit, if you have good credit you may look at the FHA insured 203(k) loan. This loan includes the mortgage and cost of repairs as well as a contingency reserve of between 10-20% for the total cost of remodeling to cover whatever extra work is needed that was not included in the original proposal. You can find a list of available lenders on HUD’s website.

The USDA has rural development loans and grants for repairs of existing homes. This is available in many rural communities and small towns between 10,000-20,000 people. Certain veterans with service related disabilities might be able to get a grant from the Department of Veterans Affairs. These types of home improvement grants would be to help make a home adapted to their specific needs.

For the best advice and direction available on the internet visit www.real-estate-yogi.com or call them directly for a free consultation at 1-800-987-1397. They can help you find home improvement financing for contractors as well as the best home improvement interest rates.