Home Improvement Grants To Fund Your Next Repair Project

Home improvements and repairs can set homeowners back thousands of dollars. To help offset the cost of pricey property improvements, the government offers financial aid to eligible homeowners who need it. While not all projects will qualify for home improvement grants, these useful financing solutions can nonetheless offer many homeowners a helpful source of financing and cash with which to make desired improvements.

What Are Home Improvement Grants?

Home improvement grants are a form of financial assistance available to homeowners who need help financing repairs to their current home. Also known as home repair grants, these types of financial aid are provided by the federal government, or various state or municipality agencies. These grants are designed to help you offset what can often be considerable home upgrade expenses.

Although highly competitive, dozens of home improvement grant programs backed by the government at the county, state and federal levels are available as potential sources of funding. These programs aren’t open to all parties and are designed to support specific types of improvements that generally ensure that homes are more accessible, livable, safe and up to code.

Where To Find Government Grants For Home Improvement

Check with your local Housing and Urban Development (HUD) office to learn about available grants in your area. You can look up and apply for available grants and programs on the HUD website.

You may also have local businesses in your area that offer home repair grants. Certain qualifications may apply and application processes can vary.

Qualifying for a home improvement grant may depend on your individual or household income, as well as other factors. Be prepared to provide personal and financial documentation when applying for a home improvement grant.

Home Improvement Grants For Homeowners

Here are some of the most popular options for home improvement grants and their requirements.

HOME Investment Partnerships Program

Administered by HUD, the HOME Investment Partnerships Program provides grants to state and local governments to help create affordable housing options for those living in low-income households. Among the most popular government grants for home improvements, these solutions are often provided in partnership with local nonprofit groups.

How The Money Can Be Used

Grant funds can be used for a wide range of activities like construction, purchasing and rehabilitation for a property. This applies to affordable housing for both owners and renters. The grant can also be used to provide rental assistance to low-income individuals or families.

Meant to help empower both individuals and communities, funding can additionally be utilized for relocation expenses, demolition of dilapidated housing and housing site acquisition or improvement.

How To Qualify

Eligibility requirements for the HOME Investment Partnerships Program include the following:

• Your income can’t exceed 30% of the HUD-adjusted median family income for your area.
• Rental projects with five or more assisted units must have a minimum of 20% of units occupied by families whose income doesn’t exceed 50% of the HUD-adjusted median family income
• The initial purchase price, or post-rehabilitation value, of a property utilizing grant funds cannot exceed 95% of the HUD-adjusted area median purchase price.

Section 504 Home Repair Program

The Section 504 Home Repair Program, also known as Single-Family Housing Repair Loans and Grants, is a government-backed loan program overseen by the U.S. Department of Agriculture (USDA). Intended to provide financial assistance for low-income and elderly homeowners, as well as those who struggle with disabilities, it supports individuals who live in rural areas outside of big cities.

How The Money Can Be Used

The Section 504 Home Repair Program can be utilized to help repair and modernize single-family homes, and funds can be applied to replace or fix important fixtures, like a property’s insulation, foundation or septic system. Recipients can also use funds received to make improvements to a property’s energy efficiency, remove health or safety hazards or make properties more accessible.

How To Qualify

To qualify for this home improvement grant, you must:

• Live in a rural area
• Be a U.S. citizen or a legal permanent U.S. resident
• Own and occupy the house
• Be least 18 years old or above
• Be unable to obtain or afford credit from other lenders
• Have a family income that doesn’t exceed 50% of the area’s median income
• Be at least 62 years old or above and unable to repay a loan

Native American Housing Improvement Program

The Housing Improvement Program (HIP) is administered by the Bureau of Indian Affairs (BIA) and federally recognized Native American tribes. It provides funding for home repair, replacement, renovation and new housing for those who meet the eligibility criteria.

How The Money Can Be Used

A safety net designed to end homelessness in Native American communities, the program is crafted to provide all families with a safe home and suitable living environment.

Under HIP’s terms, you can obtain up to $7,500 for housing repairs related to concerns that threaten occupants’ health and safety, and up to $60,000 for repairs or renovations that improve the condition of a property to ensure it meets building code standards. It can also be tapped to obtain replacement or new housing.

How To Qualify

To be eligible, you must:

• Be a member of a federally recognized Native American tribe or an Alaskan Native
• Live in an approved tribal service area
• Have an income that does not exceed 150% of U.S. Department of Health and Human Services (DHHS) Poverty Guidelines
• Have present housing that is substandard, as defined by federal regulations
• Be unable to access other resources for housing assistance
• Have not acquired your present housing through a federally sponsored housing assistance program

Home Improvement Grant Options For Seniors

Seniors also enjoy access to many home improvement grants and government-sponsored financial assistance programs designed to support their specific needs.

Area Agency On Aging

Funds for home repair and modification can be accessed by turning to your county’s local Area Agency on Aging office, which has the ability to tap into funds granted under the Older Americans Act.

Backed by HUD, the programs that it administers offer support for home repairs and accessibility improvements that make properties safer and more livable for senior citizens. To determine your eligibility, which can vary by state and county, you’ll want to search online for your specific city and Area Agency on Aging. Funding values and limits may vary by county and region.

Home Improvement Grants For Veterans

Veterans and experienced service members further enjoy access to a unique range of home improvement grants. Each grant has its own purpose and qualification requirements. Qualified readers are encouraged to contact their regional Department of Veterans Affairs (VA) office for more information.

VA Specially Adapted Housing (SAH) Grant

These housing grants are designed to help support veterans and service members with service-connected disabilities in their efforts to purchase or update homes to meet their individual needs. Some ways funds might be used include widening doorways, installing ramps or adding more easily accessible pathways to commonly accessed areas of the home.

Grant funds – which can be used up to six different times over an individual’s lifetime – can also be used to buy, build or update properties. If you qualify for an SAH grant, which is designed to be applied to a permanent residence, you can receive up to $117,014.

VA Special Home Adaptation (SHA) Grant

Alternatively, you may also be able to obtain a Special Home Adaptation (SHA) grant, which covers different kinds of disabilities. Under the terms of an SHA grant, you can receive up to $23,444 in funding assistance in 2024.

To be eligible for an SHA grant, you must:

• Own or will own your home
• Have a qualifying service-connected disability

Temporary Residence Adaptation Grant

A Temporary Residence Adaptation (TRA) grant is a variant of the SAH or SHA grant designed to support veterans and service members looking to receive funds to help update the home of a family member where they’re currently living. In effect, if you qualify for a SAH or SHA grant and are temporarily living in a family member’s home that needs changes to meet your needs, you may be able to access the TRA grant program.

Under the current terms of the TRA program, if you qualify for an SAH grant, you can receive up to $47,130 in funding, and if you instead qualify for an SHA grant, you can receive up to $8,415 in funding.

Additional Financing Options For Home Improvement

Homeowners also have a wide range of non-government options available to them to finance home improvement projects.

Cash-Out Refinance

A cash-out refinance leverages equity in your house to let you consolidate high-interest debt to a lower rate or perform home improvements. It’s a form of mortgage refinance under which you take out a larger mortgage than the sum of your original loan, pay off the original loan balance and then pocket the difference.

Upon refinancing, you can use the cash taken out to make repairs, institute home improvements or otherwise upgrade your property, though you will extend the period of repayment on your mortgage to do so.

Home Equity Line Of Credit (HELOC)

A HELOC is a form of financing that lets you borrow against current home equity and repay this money over an extended period. It’s a type of second mortgage that allows property owners to borrow cash against the equity that they hold in their home and receive these sums in the form of a line of credit.

Interest rates on HELOCs are usually variable and can fluctuate with the market. Unlike a cash-out refinance (which replaces your current mortgage with a new home loan), a HELOC involves making two payments, one on your existing mortgage and one on the HELOC itself. Rocket Mortgage^® does not offer HELOCs at this time.

Weatherization Assistance Programs (WAP)

Weatherization Assistance Programs (WAP) are provided to help support homeowners in their efforts to make properties safer and more energy efficient. Households that make weatherization improvements and upgrades can save hundreds of dollars a year.

From repairs to caulking and weather stripping, these programs provide funding for the installation of energy conservation solutions throughout low-income families’ homes that can help improve residents’ safety and reduce heating and cooling demands. Funds are provided free to eligible applicants.

The Bottom Line: There Are Many Homeowner Grants For Home Improvement

Home improvement grants provide government-sponsored financial aid to those in need of relief. These home improvement grants are designed to support the purchase and rental of affordable housing, or – especially in the case of low-income, elderly or disabled homeowners – to help fund much-needed home repairs, upgrades and enhancements. Look up local home improvement grants in your area to see what you’re eligible for, or consider a non-government alternative.

Interested in a cash-out refinance for home improvements? Get started today with Rocket Mortgage.