Free Government Grant for Home Remodeling

Home repair loans and grants exist for very low-income families living in rural areas. The 504 grants are intended to repair safety and sanitary concerns as well as making homes accessible for people with disabilities.

Types

Two types of government aid are available to rural, low-income families. The 504 grant provides up to $7,500 in grant money. The Home Repair Loan is a very low-interest loan in an amount up to $20,000. Grants and loans can be combined for a total of $27,500 in assistance.

Qualifications

Grant applicants must be older than 62 years old and unable to obtain affordable credit through other methods. Loan applicants can be younger than 62 years old. Both types of assistance require families to be living in substandard conditions and to have income 50 percent below the area median. The applicant must be the owner and the occupant.

Uses

Money from grants and loans must be used to make the home safe and/or sanitary. All work must meet local codes for health and safety standards. Construction will be regularly inspected by a rural development representative.

Types of Work

Good examples of projects include new roofing, adding central heat, ramps for wheelchair accessibility and adding running water for bathrooms or showers. Grants are only to be used for sanitary and safety projects, while loan money can be used for cosmetic projects.

Process

Applications are made through rural development. After approval, a complete inspection will be made of the property. Rural development will develop a list of approved repairs. Multiple bids must be obtained and approved before work can begin.

Considerations

Grant money is required to be returned to rural development if the home is sold within three years. Applicants are only eligible for grant money one time.

References

• HUD 504 Grant