I would like to know if I could take a hardship loan out for household repairs. My ceilings are falling, holes in the walls, leak from back porch ceiling, mold, bathroom floor is rotten, too much moisture underneath the house and I need installation in my walls because there is none and the house is so cold. My power bill is outrageous during the summer and winter. Does this type of repair qualify me to get the hardship loan? I live from pay check to pay check, to pay my bills and there is just no extra money to make major repairs.
Homeowners may qualify for repair, refinance, and mortgage loans and grants from the US Dept. of Agriculture (USDA) and the Dept. of Housing and Urban Development (HUD). However, qualifications are stringent, and the key factors in receiving a grant or loan include the applicant's income and age, and the location and value of the property.
Homeowners living in rural areas should focus their initial search for grants and loans on the USDA. According to the USDA, "Single Family Housing Programs provide homeownership opportunities to low- and moderate-income rural Americans through several loan, grant, and loan guarantee programs. The programs also make funding available to individuals to finance vital improvements necessary to make their homes decent, safe, and sanitary."
The USDA offers nine residential loans and grants programs:
Applicants for loans may have an income of up to 115% of the median income for the area. Be aware this program has area income limits.
Section 502 loans are primarily used to help low-income individuals or households purchase homes in rural areas.
The Very Low-Income Housing Repair program provides loans and grants to very low-income homeowners age 62 and older to repair, improve, or modernize their dwellings or to remove health and safety hazards. Rural Housing Repair and Rehabilitation Grants are funded directly by the government.
The Section 502 Mutual Self-Help Housing Loan program is used primarily to help very low- and low-income households construct their own homes.
Rural Housing Site Loans are made to provide financing for the purchase and development of housing sites for low- and moderate-income families.
Housing Application Packaging Grants provide government funds to tax-exempt public agencies and private non-profit organizations to package applications for submission to Housing and Community Facilities Programs.
Individual Water and Waste Water Grants provide Government funds to households residing in an area recognized as a colonia before October 1, 1989.
Self-Help Technical Assistance Grants provide financial assistance to qualified nonprofit organizations and public bodies that will aid needy very low and low-income individuals and their families to build homes in rural areas by the self help method. Any state, political subdivision, private or public nonprofit corporation is eligible to apply.
These grants help low-income rural families in obtaining adequate housing to meet their family's needs and/or to provide the necessary guidance to promote their continued occupancy of already adequate housing.
Contact the local Rural Development office in your area for more information about these programs, or to file an application.
HUD does not make direct loans to help people buy homes, but instead insures loans by people who qualify for HUD programs. FHA-approved lending institutions submit applications to have the property in question appraised and have the buyer's credit approved.
Section 203(k) is HUD's primary program for the rehabilitation and repair of single family properties. See the Rehab a Home w/HUD's 203(k) and Funds for Handyman-Specials and Fixer-Uppers Web pages to learn the qualifications for Section 203(k) financing.
HOME is HUD's grant program to help people rehabilitate housing. It is administered at the state and county level. Go to the HUD HOME Program Contacts page to learn how HOME grants are awarded in your area.
I hope this information helps you Find. Learn & Save.