Making your Home More Accessible: Modification Grants and Loans Help

It can cost quite a lot to modify a home to accommodate disability, inquiry, or aging. You may need to spend thousands of dollars for easier-to-use appliances, modified kitchen cabinets, or wider doors. Before you decide to spend your own savings on these upgrades, it pays to search for assistance from nonprofit organizations and the government. You may find resources for people with disabilities, low-income households as well as the elderly.

What Is a Grant?

This is a form of monetary assistance that the recipient doesn’t need to pay off. Grants can be issued by local, state, and federal governments to people who qualify. Yet, not every consumer is eligible for these grants, while most of them have strict eligibility criteria and demands that potential recipients need to meet. If you review the criteria and qualify, you may find it a suitable source of financing for your home modification project.

A grant works differently from a regular loan. Some people may experience a financial emergency and need a loan for rent payment in order to avoid penalties. Getting a small loan is a temporary solution to cover urgent costs as well as minor repairs provided that you have a steady income source to return the debt. Grants don’t need to be returned but the application process and rules are stricter as not every individual will receive it even if they qualify.

Federal Home Modification Grants

Who can qualify for the grants from the federal government? Usually, it’s the residents of rural areas and military service members. Rural Housing repair loans and grants to rural homeowners with very low income are provided by the U.S. Department of Agriculture. Low income households are defined as those who earn less than 50% of the average income in their area. Homeowners aged 62 and older may qualify for grants up to $7,500.

Consumers who are younger may obtain up to $20,000 in loans at 1% interest that should be paid off each month over 20 years. According to this department, these loans and grants may be combined. Moreover, several grants for veterans and service members are offered by the U.S. Department of Veterans Affairs. Such grants can be used for home modifications and home improvement projects.

Here are a few examples of grants you may qualify for:

• The Special Home Adaptation grant. It offers up to $20,387 for the fiscal year 2022. The funds can be utilized for home modifications.
• The Specially Adapted Housing grant. It offers up to $101,754 for the fiscal year 2022. The funds can be used to help consumers modify a home they will build, purchase, or change.
• The Home Improvements and Structural Alterations grant. It offers up to $6,800 for recipients with service-related disabilities, and up to $2,000 for those with non-service-related disabilities. Accessibility updates to bathrooms and home entrances and other medically necessary home modifications can be covered with this grant.
• The Temporary Residence Adaptation grant. It offers up to $40,938 in the fiscal year 2022 for SAH-qualified recipients and up to $7,318 in the fiscal year 2022 for SHA-qualified recipients. This grant can be used to cover home modification costs in the place you are temporarily living.
• The American Red Cross can also provide emergency monetary aid to military retirees and their families.  If this organization can’t help you, it can connect you with local companies and groups that can.

Where You Can Apply for Home Improvement Grants

Consumers can contact their local Housing and Urban Development (HUD) office or visit their website. HUD may allow consumers to learn what grants are available in their area. They have a list of states that offer grants and resources for home repairs. The data on the website of this department vary. 

Another option is to turn to The National Residential Improvement Association (NRIA) to get grants for home repairs. A questionnaire should be filled out to check what types of grants and financial assistance consumers can qualify for.

Finally, you may choose The Independent Living Research Utilization program. This program includes a directory of organizations that are eager to support consumers with disabilities who decide to live independently. 

Particular companies and nonprofits offer funding for chairlifts as assistive technology. Visit the state’s housing department for additional monetary aid. Your county or city government can have programs to support home modifications. Reach them on the phone and call 211.

Who Is Eligible for Home Improvement Grants?

Individuals who meet these criteria can be eligible for home improvement grants:

• Be at least 62 years old;
• Meet income limitations;
• Own and occupy the home;
• Be unable to procure approval for affordable credit from alternative sources.

Other Forms of Financial Assistance for Homeowners

Some people can’t qualify for federal or local grants. Still, not every consumer can afford to pay for their home renovation project. Here are some alternative options to get financial assistance and fund your needs.

• Tax credits. Tax deductions may be utilized in home improvement and home modification expenses as a credit against taxes when you sell your home or want to repair your home office if you work from home.
• Low-cost loans. HUD, USDA, and some other organizations offer reasonable loans to low-income households. The interest rate is quite affordable but you are obliged to return this debt.
• Cash-out refinance. A part of your home equity can be turned into cash. This sum may be utilized for other needs such as home modifications. The interest rate on these lending options is tax-deductible. Besides, the interest rate is lower compared to other loans. Make sure you understand the terms as the length of the repayment period for your mortgage can be increased.

The Bottom Line

It can be expensive to fund a home improvement project. However, there are many grants and programs from the local and federal government to help low-income consumers obtain supplemental financial aid to renovate their homes or modify them. Some consumers who can’t qualify for these grants may apply to alternative options such as cash-out refinancing, low-cost loans, or tax credits.