Find out if you can qualify for Home Repair Grants

Repair grants can be a very useful way to perform essential work without having to worry about breaking the bank. They are however very difficult to qualify. Most of the time, loan funds will be made available to make the same repairs, but with a requirement that the money be repaid to the lender. There are strict requirements as to the qualification of the grant or loan, and if these conditions are not fulfilled, no amount will be paid.

The plan is administered under section 504. To qualify for repair grants or home loans, you will either have to be a US citizen, or at least someone who has the legal right to stay in the United States permanently. The age limit is sixty two years. You will need a very low income, less than half the average income of the county in which you live. To qualify for a loan, you must be able to repay your current income.

You will need to have both the owner and the occupant of the property that will be repaired and improved upon payment of the loan. The credit requirements are strict, in that you must have a reasonable credit history, but you must also be able to secure credit anywhere else. If you are unable to repay a loan, you may qualify for a home repair grant. There are restrictions on the amount of money that can be lent, and also on the purposes for which money can be used.

There is a limit to the amount of any loan that must never exceed twenty thousand dollars. The limit for grants is even less, $ 7,500, and this limit is a lifetime limit. The loan limit is a maximum threshold, so it is technically possible to borrow this amount, repay the loan, and then repay it so that it reaches the limit again. Restrictions on the possible use of money include not paying off existing debts, not making improvements away from the property site, and not making changes that do not affect the issues of security.

The purpose of the Home Repair Grants Program is to reduce security risks and, as a result, reduce the burden of health services. Although the loan improvement criteria are not as strict as those of the grants, they remain rigorous. Good uses for money include the repair of any roof, overhaul of heating system, repair of gas or electricity appliances, and insulation. All of these uses are acceptable for repair grants under section 504.



Source by Chris Monk

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