All About Home Repair Grants

Table of Contents

Introduction

Statistics

According to the U.S. Census Bureau, in 2019, there were about 138.5 million housing units in the United States, of which 65.8% were owner-occupied. However, many of these homes are in need of repair or improvement, especially among low-income households. A 2017 report by the Joint Center for Housing Studies of Harvard University found that 32% of low-income homeowners had at least one major problem with their homes, such as plumbing, heating, electrical, or structural issues. Moreover, the report estimated that 2.6 million low-income homeowners lived in homes that lacked complete plumbing or kitchen facilities, or had severe physical problems.

The cost of home repairs can be a significant burden for low-income homeowners, who often lack the savings, credit, or equity to finance them. The same report by the Joint Center for Housing Studies found that the median annual spending on home improvements and repairs by low-income homeowners was only $1,200 in 2017, compared to $3,300 for all homeowners. Furthermore, the report noted that low-income homeowners were more likely to defer maintenance, which can lead to more serious and costly problems in the future.

How to Find Home Repair Grants

There are several sources of home repair grants for eligible homeowners, depending on the type, location, and condition of their homes. Some of the most common sources are:

The U.S. Department of Housing and Urban Development (HUD), which offers several grant programs to assist low-income homeowners with the cost of home repair. Some of these programs are available nationwide, while others are only available at the state or county level.
The Federal Emergency Management Agency (FEMA), which provides grants to homeowners who have suffered damage from natural disasters, such as hurricanes, floods, earthquakes, or wildfires.
The U.S. Department of Agriculture (USDA), which offers grants to rural homeowners who need to repair or improve their homes to meet health and safety standards.
State weatherization programs, which help low-income homeowners reduce their energy bills by making their homes more energy efficient. These programs may provide grants or free services, such as insulation, air sealing, heating and cooling system upgrades, or renewable energy installations.
Nonprofit organizations, such as Habitat for Humanity or Rebuilding Together, which partner with local volunteers and donors to provide home repair services or materials to low-income homeowners, especially those who are elderly, disabled, or veterans .

To find home repair grants that suit your needs, you can start by searching online for the keywords “home repair grants” and your state or county name. You can also contact your local or county government housing department, or your state housing finance agency, to ask about the available programs in your area. Additionally, you can visit the websites of HUD, FEMA, USDA, or the nonprofit organizations mentioned above, to learn more about their eligibility criteria, application process, and contact information.

Eligibility and Requirements

The eligibility and requirements for home repair grants vary depending on the source, purpose, and amount of the grant. However, some of the common factors that may affect your eligibility are:

Your income level: Most home repair grants are intended for low-income homeowners, who typically earn less than 80% of the area median income (AMI). Some programs may have lower or higher income limits, depending on the availability of funds and the target population. You may need to provide proof of your income, such as tax returns, pay stubs, or benefit statements, to verify your eligibility.
Your age: Some home repair grants are specifically for elderly homeowners, who are usually defined as those who are 62 years or older. You may need to provide proof of your age, such as a driver’s license, passport, or birth certificate, to verify your eligibility.
The type of property you own: Most home repair grants are for single-family homes, which are detached, attached, or semi-detached dwellings that house one family. Some programs may also cover mobile homes, manufactured homes, or condominiums, as long as they are owner-occupied and meet the program’s standards. You may need to provide proof of your ownership, such as a deed, mortgage, or title, to verify your eligibility.
Where your property is located: Some home repair grants are only available in certain geographic areas, such as rural areas, urban areas, or disaster-affected areas. You may need to provide proof of your address, such as a utility bill, property tax bill, or lease agreement, to verify your eligibility.
The condition of your home: Most home repair grants are for homes that need repair or improvement to meet health, safety, or energy efficiency standards. Some programs may have specific criteria for the type, extent, or cost of the repairs or improvements that are eligible. You may need to provide an inspection report, a contractor’s estimate, or a work plan, to verify your eligibility.

Application Process

The application process for home repair grants may vary depending on the source, purpose, and amount of the grant. However, some of the common steps that you may need to follow are:

Research and compare the available programs in your area, and choose the one that best suits your needs and eligibility.
Contact the program’s administrator, either by phone, email, or online, and request an application form or instructions. You may also need to schedule an appointment for an initial consultation or assessment.
Fill out the application form with accurate and complete information, and attach the required documents, such as proof of income, age, ownership, address, and home condition. You may also need to provide personal information, such as your name, social security number, contact details, and bank account information.
Submit the application form and the required documents to the program’s administrator, either by mail, fax, email, or online, before the deadline. You may also need to pay a fee, if applicable, to cover the administrative or processing costs.
Wait for the program’s administrator to review your application and verify your eligibility. You may be contacted for additional information, clarification, or verification, if needed. You may also need to undergo a home inspection, an energy audit, or a site visit, to determine the scope and cost of the repairs or improvements that are eligible.
Receive a notification of the approval or denial of your application, along with the reasons and conditions, if any. You may also receive a grant agreement, a contract, or a letter of commitment, that outlines the terms and obligations of the grant, such as the amount, duration, use, and repayment, if any.

The Approval and Disbursement Process

The approval and disbursement process for home repair grants may vary depending on the source, purpose, and amount of the grant. However, some of the common steps that you may need to follow are:

Sign and return the grant agreement, contract, or letter of commitment, to the program’s administrator, either by mail, fax, email, or online, within the specified time frame. You may also need to provide additional documents, such as a work plan, a contractor’s license, or a building permit, to finalize the grant.
Receive the grant funds, either by check, direct deposit, or electronic transfer, to your bank account, or to your contractor’s account, depending on the program’s policy. You may receive the funds in one lump sum, or in installments, depending on the program’s policy.
Use the grant funds for the intended purpose, and follow the program’s guidelines and regulations, such as the type, quality, and timeline of the repairs or improvements. You may also need to keep receipts, invoices, or other records of the expenses, to document the use of the funds.
Complete the repairs or improvements, and notify the program’s administrator, either by phone, email, or online, when the work is done. You may also need to submit a completion report, a final inspection report, or a satisfaction survey, to verify the completion and quality of the work.
Maintain the repairs or improvements, and comply with the program’s requirements, such as reporting, monitoring, or evaluation, for the duration of the grant. You may also need to repay the grant, partially or fully, if you sell, transfer, or refinance your home, or if you fail to meet the program’s conditions, depending on the program’s policy.

Alternatives to Grants

If you do not qualify for home repair grants, or if you need additional funds to cover the cost of your home repairs or improvements, you may consider some of the following alternatives:

Loans: Loans are a form of financial assistance that you borrow from a lender, such as a bank, a credit union, or a government agency, and repay over time, with interest. Loans may have lower or higher interest rates, fees, and terms, depending on your credit score, income, equity, and collateral. Some of the common types of loans for home repairs or improvements are:
Home equity loans: Home equity loans are loans that use the equity in your home, which is the difference between the value of your home and the amount you owe on your mortgage, as collateral. Home equity loans may offer lower interest rates, larger loan amounts, and longer repayment periods, than other types of loans

Home improvement loans: Home improvement loans are loans that are specifically for financing home repairs or improvements. Home improvement loans may not require any collateral, but they may have higher interest rates, smaller loan amounts, and shorter repayment periods, than other types of loans.
Personal loans: Personal loans are loans that are not tied to any specific purpose, and can be used for any personal or household expenses, including home repairs or improvements. Personal loans may not require any collateral, but they may have higher interest rates, fees, and terms, than other types of loans.
Government-insured loans: Government-insured loans are loans that are backed by the federal government, which guarantees to repay the lender in case of default. Government-insured loans may offer lower interest rates, fees, and terms, than other types of loans, but they may have stricter eligibility and requirements. Some of the common types of government-insured loans for home repairs or improvements are:
- FHA 203(k) loans: FHA 203(k) loans are loans that are insured by the Federal Housing Administration (FHA), and allow homeowners to borrow money to purchase or refinance a home and pay for its repairs or improvements. FHA 203(k) loans may cover a wide range of repairs or improvements, such as structural, cosmetic, or energy efficiency upgrades.
- VA home improvement loans: VA home improvement loans are loans that are insured by the Department of Veterans Affairs (VA), and allow veterans, service members, or their spouses to borrow money to repair or improve their homes. VA home improvement loans may cover a wide range of repairs or improvements, such as roofing, plumbing, electrical, or accessibility modifications.
- USDA home repair loans: USDA home repair loans are loans that are insured by the U.S. Department of Agriculture (USDA), and allow rural homeowners to borrow money to repair or improve their homes. USDA home repair loans may cover a wide range of repairs or improvements, such as heating, ventilation, or water systems.
Credit cards: Credit cards are a form of financial assistance that allow you to borrow money from a lender, such as a bank, a credit union, or a retailer, and repay it over time, with interest. Credit cards may have lower or higher interest rates, fees, and terms, depending on your credit score, income, and spending habits. Credit cards may be convenient and flexible, but they may also be risky and expensive, especially if you carry a balance or miss a payment. Some of the common types of credit cards for home repairs or improvements are:
- Cash back credit cards: Cash back credit cards are credit cards that offer a percentage of your purchases back as cash, which you can use for any purpose, including home repairs or improvements. Cash back credit cards may offer higher or lower cash back rates, depending on the category of your purchases, such as groceries, gas, or home improvement stores.
- Rewards credit cards: Rewards credit cards are credit cards that offer points, miles, or other rewards for your purchases, which you can redeem for various products, services, or experiences, including home repairs or improvements. Rewards credit cards may offer higher or lower rewards rates, depending on the category of your purchases, such as travel, dining, or entertainment.
- Zero-interest credit cards: Zero-interest credit cards are credit cards that offer a promotional period of zero or low interest on your purchases, balance transfers, or cash advances, which you can use for home repairs or improvements. Zero-interest credit cards may offer longer or shorter promotional periods, depending on your credit score, income, and spending habits. However, once the promotional period ends, the interest rate may increase significantly, and you may have to pay back the entire balance or a portion of it, depending on the terms of the offer.

Success Stories

There are many success stories of homeowners who have benefited from home repair grants, and improved their living conditions and safety. Here are some examples:

Mary, a 68-year-old widow from Kentucky, received a $7,500 grant from the USDA to repair her roof, which was leaking and causing mold and mildew in her home. She also received a $20,000 loan from the USDA to replace her windows, doors, and siding, which were old and inefficient. She said that the grant and loan helped her save money on her energy bills, and made her home more comfortable and secure.
John, a 55-year-old veteran from Texas, received a $6,800 grant from the VA to install a wheelchair ramp, widen his doors, and modify his bathroom, to accommodate his mobility needs. He also received a $25,000 loan from the VA to replace his HVAC system, which was broken and unsafe. He said that the grant and loan helped him maintain his independence and dignity, and made his home more accessible and healthy.
Lisa, a 42-year-old single mother from Florida, received a $15,000 grant from FEMA to repair her home, which was damaged by Hurricane Irma. She also received a $30,000 loan from the SBA to replace her appliances, flooring, and furniture, which were ruined by the flood. She said that the grant and loan helped her recover from the disaster, and made her home more resilient and beautiful.

Additional Resources and Support

If you need more information or support on how to find and apply for home repair grants, you can visit the following websites or contact the following organizations:

HUD: HUD is the federal agency that oversees housing and urban development in the United States. HUD offers various grant programs to assist low-income homeowners with the cost of home repair. You can visit HUD’s website at https://www.hud.gov/ to learn more about their programs, eligibility, and application process. You can also contact HUD’s local office in your state or county, or call their toll-free number at 1-800-569-4287, to get assistance or referrals.
FEMA: FEMA is the federal agency that coordinates disaster response and recovery in the United States. FEMA provides grants to homeowners who have suffered damage from natural disasters, such as hurricanes, floods, earthquakes, or wildfires. You can visit FEMA’s website at https://www.fema.gov/ to learn more about their programs, eligibility, and application process. You can also contact FEMA’s Disaster Assistance Helpline at 1-800-621-3362, or visit their Disaster Recovery Center Locator at https://www.fema.gov/disaster-recovery-centers, to get assistance or referrals.
USDA: USDA is the federal agency that supports agriculture and rural development in the United States. USDA offers grants to rural homeowners who need to repair or improve their homes to meet health and safety standards. You can visit USDA’s website at https://www.usda.gov/ to learn more about their programs, eligibility, and application process. You can also contact USDA’s Rural Development office in your state or county, or call their toll-free number at 1-800-670-6553, to get assistance or referrals.
Habitat for Humanity: Habitat for Humanity is a nonprofit organization that builds, repairs, and improves homes for low-income families around the world. Habitat for Humanity partners with local volunteers and donors to provide home repair services or materials to low-income homeowners, especially those who are elderly, disabled, or veterans. You can visit Habitat for Humanity’s website at https://www.habitat.org/ to learn more about their programs, eligibility, and application process. You can also contact Habitat for Humanity’s local affiliate in your area, or call their toll-free number at 1-800-422-4828, to get assistance or referrals.
Rebuilding Together: Rebuilding Together is a nonprofit organization that repairs and revitalizes homes and communities for low-income homeowners across the United States. Rebuilding Together partners with local volunteers and donors to provide home repair services or materials to low-income homeowners, especially those who are elderly, disabled, or veterans. You can visit Rebuilding Together’s website at https://rebuildingtogether.org/ to learn more about their programs, eligibility, and application process. You can also contact Rebuilding Together’s local affiliate in your area, or call their toll-free number at 1-800-473-4229, to get assistance or referrals.

Conclusion

Home repair grants are a form of financial assistance available to homeowners who need help financing repairs to their current home. These grants are provided by the federal government, or various state or municipality agencies, and are designed to help low-income, elderly, disabled, or rural residents improve their living conditions and safety. Unlike loans, grants do not need to be repaid, making them an attractive option for those who qualify. However, grants may have limited availability, strict eligibility, and complex application process, making them hard to access for some homeowners. Therefore, homeowners who are interested in home repair grants should research and compare the available programs in their area, and choose the one that best suits their needs and eligibility. Alternatively, homeowners who do not qualify for home repair grants, or who need additional funds to cover the cost of their home repairs or improvements, may consider some of the other forms of financial assistance, such as loans, credit cards, or nonprofit services.