Home and Living

A home improvement grant is money that is loaned to you so that you can fix up your home. While this may sound like easy money at a lower interest rate, there are some special restrictions and certain eligibility criteria that you have to fulfill in order to qualify.

First of all, you should own and occupy the property for which you are applying for the loan. This means that if you are renting a home you cannot apply for this grant, nor can you apply if you own the home but are renting it out for an investment.

You also need to be sure that you read all of the paperwork. Some grants are only for exterior home improvements such as siding, roofing, fixing up the driveway, etc. Other loans have limitations for interior home improvements. This includes such things as a non-functioning bathroom or leaky ceiling but it does not cover hot tubs or granite countertops.

You also need to be sure that all of the contractors that are handling your home improvement grant repair work are either HUD certified or approved by the city in which they operate. This is because they need to know all about the local zoning codes. They also need to comply with all of your community’s health and safety standards.

In order to qualify for these grants you also have to meet certain age or income restrictions. For instance some home improvement grants may only be awarded to senior citizens or residents whose gross income falls 50% below the median for the area that you live in. This is why you must always know all of the financial fine print that is associated with your home improvement grant such as the interest rate, the repayment period and other hidden charges and fees. Since the interest rates that are charged here are lower than what any other lending institution would charge, the repayment terms will be strict so that they prevent default.

Of course, you must also be a United States citizen or a legal resident in order to apply for a home improvement grant. You should also have enough documentation to prove this. Once all of the requirements have been completed and you receive the grant, you can then only use the money on the specified project. You cannot use this money to pay off any other debts because your home will have to have an inspection once the work is done.