Home Improvement Grants - Federal funds to modernize your home

The federal government offers a number of programs designed to help citizens with home and home repair. One of the programs administered by the U.S. Department of Agriculture Office of Rural Development provides grants and loans to owner-occupants of very low income households for home improvements and repairs. Known as Section 504 loan and grant program was authorized by the Housing Act 1949.

The program offers loans for general repairs to the owner's property and funds primarily aimed at mitigating the health and safety problems. Home Improvement Grants are also awarded for the removal of safety hazards and for remodeling projects that make homes more accessible to people with disabilities. The loan or grant funds can also be used for the overall modernization of the property.

Generally, grants and loans are made to improve the infrastructure to property heating, electrical systems and plumbing. Especially given the current emphasis on energy conservation and environmental projects, many of the awards are focused on weatherization of low-income properties.

Because these grants and loans are administered by the Department of Agriculture that the program is aimed primarily at rural low-income areas. To be eligible for this program, housing must be in a rural area with a population of less than 10,000. In some cases the eligibility expands to areas with up to 25,000 people, when the community is not included in a Metropolitan Statistical Area.

Loans up to $ 20,000 for eligible individuals and have an interest rate of one percent with up to a term of 20 years for repayment. Donations can go as high as $ 7,500 and as the name suggests do not have to be repaid.

To be eligible for grant funding for homeowner must be over 62 and do not have the ability to repay a loan.