If you are interested in remodeling or upgrading essential features on your home, be sure to check if your project is eligible for government funding before you jump in. According to Michael Litzner, Broker of Century 21 American Homes, there are several different home improvement programs funded by the federal government.
"If you are making a basic livability repair or improvement to your home-say a necessary addition or a new roof-you may be able to apply for a Title 1 Home Improvement Loan," says Litzner. Private lenders often fund these loans, and HUD insures these loans for up to $25,000 for a singly-family home.
However, if you need help refinancing major repairs or rehabilitations to your home, look into a Section 203(K) program. "This is HUD's primary rehabilitation program, and is especially useful for those purchasing 'as is' properties that need a lot of work," says Litzner.
If you or someone in your family is a veteran, you may be able to apply for a loan from the Department of Veterans Affairs. "These loans allow veterans to refinance an existing loan at a lower interest rate, or acquire a new loan to buy or improve an existing home," explains Litzner.
"If you live in a rural area and need to modernize your home, or remove a health or safety hazard, you may be able to apply for a Rural Housing Repair and Rehabilitation Loan, funded by the Agriculture Department," suggests Litzner. These loans are extremely low-rate, and available to low-income rural residents.
"If your home has been damaged due to a natural disaster, fire or flooding, another financing option you want to consider is a loan from the Small Business Administration, which offers assistance to individuals as well as businesses," explains Litzner. These loans cover both uninsured and underinsured losses, and are issued after a disaster declaration is signed by the President or SBA administrator. "Applicants need to register with the Federal Emergency Management Agency, and can be eligible for loans up to $200,000 for replacement of a primary residence," says Litzner.
Before you begin funding a major home improvement or repair on your own, make sure to look into all of your options to see if you are eligible to receive government funding for a necessary project.
For more information on home improvement loans, please contact Century 21 American Homes at MLitzner@C21AmHomes.com, 1-800-270-6318, or Century 21 American Homes.
Century 21 American Homes is one of the fastest growing real estate brokerages serving Long Island, Queens and Brooklyn. To find out more about an exciting career in real estate contact us at firstname.lastname@example.org.