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Step 1
Understand the difference between a loan and a grant. A loan needs to be repaid, usually with interest. A grant is money that is provided for a specific need and you do not have to pay it back. Also, remember the grant programs mentioned in this article are offered by the U.S. federal government. Other grant money for home improvement is available from the state and local levels. Information about these can be obtained from regional Fair Housing Resource Centers.
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Step 2
Determine if you are eligible for federal funding. Grants are available through the U.S. Department of Agriculture (USDA). The Home Repair Loan and Grant Program provides money to senior homeowners over the age of 62. The maximum amount of grant money is $7,500, and it must be used to make the home safer and more sanitary. Most money is used for fixing or putting on new roofs, updating utilities and improving accessibility for the disabled and elderly. Other uses include weatherization, replacement of septic systems and renovations of bathrooms. With the Housing Preservation Grant Program, nonprofits, public organizations and Native American tribes receive funding to repair homes and rental real estate. The funds help owners bring their homes to code. This funding is also established for individuals whose income is at or below the poverty line.
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Step 3
Find out if the grant money is available in your area, since funding varies depending on the location in the United States. Contact the local USDA Rural Development office to inquire about local housing preservation programs.
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Step 4
Apply for the USDA funding through the Rural Development state and local offices or USDA Service Centers. To find an office near you, call (800) 670-6553 or go online to the USDA Rural Development site. See the Resources section below for a link.
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Step 5
Have the information you need when filling out the application, such as tax returns, pay stubs and any other paperwork that outlines a need for financial assistance.
