Federal Home Improvement Loan Programc

The federal home improvement loan program is actually an umbrella of a number of many programs the United States government offers to qualified applicants to help renew rundown neighborhoods in cities across the country. In addition there are programs to help homes in rural areas also receive the needed improvements to remain viable housing for those living in the country. In general, these federal home improvement loan programs are low in interest and are available both for home owners and investors looking to flip a house in a short amount of time. While lending programs are offered by the federal government, there is also grant money available in some cases that do not have to be repaid. A careful study of all available programs can make finding a loan a more profitable experience.

The main governmental agency that disburses federal home improvement loan program funds is the Department of Housing and Urban Development, better known as HUD. HUD usually executes its federal home improvement loan program through local or state housing authorities and even through some non-profit agencies. Each type of lending program for house rehabilitation has its own niche demographic it addresses and applicants must meet certain standards. The following are description of each of the main programs offered by HUD. "If any man serve me, let him follow me; and where I am there shall also my servant be; if any man serve me, him will my Father honor." (John 12:26)

The Title 1 Home Improvement Loan is insured by HUD up to $25,000 for a single-family house and lenders make loans for basic livability improvements such as additions and new roofs to eligible borrowers. The Section 203(k) Program is one that HUD helps finance for the major rehabilitation and repair of one- to four-family residential properties, excluding condos. Owner-occupants may use a combination lending agreement to purchase a fixer-upper "as is" and rehabilitate it, or refinance a property plus include in the lending agreement the cost of making the improvements. They also may use the lending agreement solely to finance the rehabilitation. Veterans can get loans from the Department of Veterans Affairs to buy, build, or improve a house, as well as refinance an existing lending agreement at interest rates that are usually lower than that on conventional loans. The fourth major federal home improvement loan program is the Rural Housing Repair and Rehabilitation loan. Funded by the Agriculture Department, these low-rate loans are available to low-income rural residents who own and occupy a home in need of repairs.

In addition to these HUD loans, the Federal National Mortgage Association (Fannie Mae) is pilot testing a new kind of federal home improvement loan program based on the anticipated value of the house after completion of the improvement. This will benefit low- and middle-income people who do not have sufficient savings or enough equity built up for a home equity loan. Fannie Mae anticipates that the average loans made through the new program will be between $15,000 and $25,000. The pilot plan, called HomeStyle, will fund about $500 million in loans. If it is successful, the program will become part of Fannie Mae's regular securitized asset options.

But a federal home improvement loan program is not the only resource available for struggling house owners in need of residential repair. There are also grants available that do not have to be repaid to the federal government but will require knowing how to write a grant and how to document all expenses incurred in disbursing the grant for its intended purpose. Consider the ecoENERGY Retrofit Homes grant that is available to owners of single family homes including detached, semi-detached and low rise multi-unit residential buildings. Property owners can qualify for federal grants by improving the energy efficiency of their homes, and reducing their home's impact on the environment. The maximum grant one can receive per home or multi-unit residential building is $5,000; whereas the total grant amount available to one individual or entity for eligible properties over the life of the program is $500,000.

There is a real pride and joy in owning one's own place of residence. Owning a house and living in it offers a sense of belonging and deep rootedness that apartment living or house renting cannot provide. But the cost of maintaining a house can be ruthlessly relentless. First it's a bad leak on the roof and then a broken water pipe and then a broken window and trouble with the wiring. And the merry go round never stops and neither does opening ones wallet or checkbook to pay for all the repairs. But at the end of the day, when all is quiet and the roof isn't leaking, home sweet home is a reality and not a euphemism.

The argument over how far the federal government should go in providing help to its citizens will always be with us, but there is help available in the form of a federal home improvement loan program for most low to low middle income families. There is also help for those who not only want to make a profit but help lessens the blight of inner city decay and despair that is easily seen in so many corners of the country. And for those who do not qualify, the Christian churches across the country need to step up and not only deliver the gospel but also a helping hand to the communities in which they serve. A hammer, some nails and love given in Jesus' name really is Christianity with its sleeves rolled up.

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