January 19, 2011

Home Improvement Loans: Federal Assistance Available

Home Improvement Loans:
Federal Assistance is available.
U.S. Department of Housing and Urban Development (HUD).
Loans for routine maintenance.

Qualifying Factors:
  1. Must own the property or have a lease at least six months longer than the loan term.
  2. Able to pay loan back in monthly installments.
  3. Qualifying credit history.
  4. Must be resident of home for 90 days previous to loan.
How To Apply:
Housing and Urban Development (HUD) does not loan money; however, HUD will guarantee the loans of private lenders.
Contact savings/loans associations, banks, credit unions, as well as finance companies in the local area, in order to qualify initially through HUD.

Allowed Improvements:
If home is at least 20 yrs old, you may qualify for a loan for nearly any (basic, permanent) home improvement, including but not limited to:
  1. repairs to bring building up to code
  2. repair potential health/safety issues
  3. energy-saving improvements
  4. replace furnace
  5. upgrades to plumbing/electric
  6. handicap accessibility improvements
Further Requirements:
  1. Must live in the home
  2. Reasonable credit risk and able to repay loan
  3. Repairs/Work must be completed within 6 months of loan date
Notes:
Annual Adjusted Income Rate will affect Interest Rate.
Maximum Loan for Single Family is $25,000, with a maximum of 20 year repay.

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