Need to make repairs in your home but don’t have the money? There is help available.
In this post, you’ll learn about resources for free home repairs or low-cost home repairs:
- Weatherization Assistance Program
- Low Income Home Energy Assistance Program (LIHEAP)
- FEMA's Individuals and Households Program
- Tax credits for efficiency improvements
- Local home repair programs
Loans for home repairs and improvements
- FHA 203(k) loan
- Residential Property Assessed Clean Energy Programs
- Rural Housing Repair Loans and Grants
- Section 502 Guaranteed Loan Program
Home repair programs for veterans
Other options for financing home repairs and improvements
So, what do you do with a house you can’t afford to fix?
Free home repair programs
Government and nonprofits offer grants and services for free to help low-income folks weatherize their homes.
Weatherization Assistance Program
The U.S. Department of Energy (DOE) Weatherization Assistance Program (WAP) offers provide homeowners and renters weatherization services that will cut down utility bills:
- Cleaning, repairing, or replacing HVAC systems
- Installing insulation in walls and around pipes
- Installing low-flow showerheads
- Replacing appliances with energy-inefficient models
If you receive Supplemental Security Income (SSI) or Aid to Families with Dependent Children, you are automatically eligible.
You can still apply even if you are not enrolled in these programs. States prioritize WAP funding for:
- People aged 60+
- Families with dependent children
- Families with at least one disabled member
- High energy users
Households must have an income at or below 200% of the federal poverty guidelines.
WAP is available in all states, U.S. territories, and tribal lands.
To apply, contact your state WAP administrator.
Low Income Home Energy Assistance Program (LIHEAP)
LIHEAP helps families lower their energy costs, including making minor energy-related home repairs repairing or replacing heating equipment or air conditioners.
Find out about the LIHEAP program in your state.
FEMA's Individuals and Households Program
If you experience a disaster that impacts your house, you may be eligible for housing assistance from the Federal Emergency Management Agency (FEMA).
To qualify, you must meet these conditions:
- You or someone who lives with you is a U.S. citizen, U.S. non-citizen national, or qualified alien
- Pass FEMA’s identity and occupancy verification process
- Pass ownership verification for home repair and replacement assistance
- Primary residence is in an area that the President of the United States has declared as a disaster area
- State of your residence is unlivable or inaccessible
- No homeowner’s insurance or your insurance does not cover all losses
FEMA offers two types of assistance:
- Financial Housing Assistance — Provides money for temporary housing, repairs, or to replace a home
- Direct Housing Assistance — FEMA provides temporary housing, repairs dwellings for displaced people, and initiates new construction in a disaster zone
Tax credits for efficiency improvements
As part of the Inflation Reduction Act,1 U.S. households can access a tax credit to cover up to 30% of the cost for certain efficiency improvements.
Here are the maximum credits for different improvement projects:
- $600 for “energy property” (efficient heating and cooling equipment)
- $600 for windows
- $250 per door
- $500 total for doors
- $2,000 for heat pumps
- $1,200 for qualified energy efficiency improvements to the building envelope, including insulation and air sealing
- $150 credit for home energy audits
The total annual credit capped at $1,200, with a separate annual $2,000 limit for heat pumps.
State programs will begin to offer rebates for electric appliances and home retrofits, which will reduce household energy bills each month.
All households can access rebates of up to $4,000, while low-income households could receive up to $8,000 for home efficiency.
Low- and moderate-income households can access rebates covering up to 100% of the costs of installing electric appliances like heat pumps, water heaters, and clothes dryers.
Local home repair programs
Here are a few programs that serve local residents. Start by googling “home repair programs near me.”
Rebuilding Together
Based in Washington, D.C., Rebuilding Together is a nonprofit in 37 states and the District of Columbia that matches homeowners with skilled volunteers and financial sponsors to perform home repairs free of charge.
Eligibility requirements vary by affiliate, but in general, you must be a homeowner with a low-income. Preference is given to:
- Single moms
- Seniors
- Veterans
- People with disabilities
To get help, contact your local affiliate.
Broward Co. Minor Home Repair Program
In Florida, the Broward County Minor Home Repair Program helps local homeowners improve the efficiency and stability of their homes with a 10-year deferred payment loan.
Improvements may include replacing roofs, doors, windows, and HVAC units.
Eligible residents:
- Live in a single family home, townhome, villa or condo
- Live in one of the program service areas
- Have a gross income that does not exceed 80% of the area median income, based on household size
- Current on their mortgage, property taxes, and homeowner’s insurance premiums
Funding is available until it is exhausted, so it’s best to reach out at the beginning of the year.
Youngstown Neighborhood Development Corporation
The Youngstown Neighborhood Development Corporation is an Ohio-based organization dedicated to reinvestment in urban neighborhoods.
There are two programs that address home repairs for owner-occupied single family homes:
- Roof Replacement — This program replaces leaky roofs at no cost to homeowners
- Emergency Home Repair — If you have an emergency with your heating and cooling unit, plumbing, and other important systems, this program will make free home repairs
The organization uses HUD guidelines to determine eligibility. Contact the organization for more information.
Loans for home repairs and improvements
The following federal and state/local government programs provide loans for home repairs:
FHA 203(k) loan
The U.S. Department of Housing and Urban Development (HUD) 203(k) loan, also known as 203(k) insurance, is insured by the Federal Housing Administration (FHA). HUD-approved lenders offer a simplified, affordable fixed or adjustable rate loan for a single family home.
It’s a great option for:
- Homebuyers — If you are buying a fixer-upper, you can roll the costs of repair into your original mortgage
- Homeowners — If you already own a home, you can refinance your current mortgage to cover the cost of the renovations
- Low- to moderate-income individuals — This program helps home buyers and homeowners who cannot afford home repairs upfront, but can pay for them over time.
To qualify for the FHA 203(k) loan, you need a minimum credit score of 500. Although this may vary by lender. There is no income limit to participate in the program.
There is a standard and limited 203(k) loan, and each addresses different needs, but all loan types must meet a minimum amount of $5,000. The total property value must be within the FHA mortgage limit for the area.
Here are just a few home improvement projects the loan can cover:
- Fixing health and safety hazards (like removing lead paint)
- Upgrading plumbing, electrical wiring, or HVAC systems
- Making the home accessible to disabled persons
- Installing energy-efficient windows or doors
- Replacing floors, roofing, or gutters
To apply or for more information, contact a participating FHA lender.
Residential Property Assessed Clean Energy Programs
The residential Property Assessed Clean Energy (PACE) program, also known as R-PACE, allows current homeowners to get financing to improve their home’s energy efficiency.
Homeowners pay back the cost over a 10- to 20-year period at a low interest rate. These payments are usually assessed with the yearly property tax bill. The debt is tied to the property instead of an individual, resulting in a lien on the property until it is paid in full.
This program is currently only active in three states: California, Florida, and Missouri.
Rural Housing Repair Loans and Grants
If you are a low-income homeowner living in a rural area, you can get a loan or grant to fix up your home to make it safe, healthy, and modern.
The loans are for a 20-year period at a 1% fixed interest rate. The grants are specifically for home repairs to remove health and safety hazards. In some cases, the grant and loan can be combined, based on the applicant’s repayment ability.
Loan amounts are up to $20,000. Grants max out at $7,500.
To be eligible for this program, you must be:
- Living in a rural area
- At least 62 years old
- Earn below 50% of the area median income
To apply or get more information, contact your local USDA service center.
Section 502 Guaranteed Loan Program
The Section 502 Guaranteed Loan Program helps low-and moderate-income families to buy or fix up a home in eligible rural areas.
This program focuses on making homeownership possible and ensures that people are living in safe, clean, modern dwellings to experience a better quality of life.
To apply, you must:
- Live in an eligible rural area
- Be a U.S. citizen, U.S. non-citizen national, or qualified alien
- Agree to live in the home as your primary residence
- Meet income eligibility requirements for your state (below 115% of the median household income in your area)
There are no credit score requirements, and Interest rates vary by lender, so applicants are encouraged to shop around.
This program works with approved lenders, backing the loans with a 90% note guarantee. The program offers 100% financing to accepted applicants. This makes it possible for qualified borrowers not to put money down.
To apply, reach out to approved lenders in your state.
Home repair programs for veterans
Disabled veterans and service members can get funding to improve accessibility at home through VA renovation loans and programs.
This includes improving home entrance access, installing equipment for bathroom safety, and upgrading plumbing or electrical work to support the demands of home medical equipment.
If you are a disabled vet, you can get help through these programs:
HISA provides up to $6,800 to fix or alter your home for disabilities that resulted from your service in the Armed Forces and $2,000 to address issues that did not originate from serving in the military.
The SAH grant gives up to $109,986 for fiscal year (FY) 2023 (Jan. 1 – Dec. 31, 2023) to buy, build, or make changes to a home you plan to stay in for a while.
SAH, which does not have to be repaid, is for veterans or service members who own or are buying a home and have a qualifying disability connected to service, including:
- Loss of one or more limbs (or loss of use)
- Loss of lower leg use and a resulting natural disease or injury stemming from the issue
- Loss of or inability to use a foot or leg (after Sep, 11, 2001)
- Blindness in both eyes (20/200 vision or less)
- Specific severe burns
Similar to the SAH grant, the The SHA grant gives qualified veterans and servicemembers up to $22,036 for fiscal year 2023. However, the qualified service-related disabilities are limited to:
- Loss of both hands (or loss of use)
- Specific severe burns
- Specific injuries that impact breathing or cause respiratory issues
To get help, contact your local VA.
Additionally, the nonprofit Veterans at Home provides free home modifications to veterans to ensure safety and accessibility and keep them independent at home.
Other options for financing home repairs and improvements
If you have equity in your home, a home equity line of credit (HELOC) or home equity loan are two options to help you handle home repairs.
Both allow you to borrow money against your home’s equity if you are:
- Employed
- Have good credit
- History of responsibly paying accounts on time
- Low income-to-debt ratio
Home equity lines of credit
A HELOC is a revolving line of credit that allows you to borrow up to 85% of your home’s value. They function much like a credit card because you can withdraw money and make minimum payments, but they often have much lower interest rates.
HELOCs also provide flexibility. During the draw period, which lasts five to 10 years, you can withdraw money for home improvements, but also consolidate debt or finance a large purchase.
The length of the repayment period is usually 20 years. You can no longer withdraw funds once you enter the repayment period.
Home equity loans
A home equity loan functions a little differently than a HELOC. You still borrow against the equity of your home, but you get the money in a lump sum.
You’ll pay the loan back over a period of anywhere from five to 30 years, typically at a fixed rate.
However, it’s important to note that if you default on the loan, you could face foreclosure.
Cash-out refinance
A cash-out refinance allows you to replace your current mortgage with a new, larger mortgage loan. At closing, you'll receive in cash the difference between the new loan amount and your old mortgage balance.
You can typically borrow up to 80% of your home's value and most lenders require you to have at least 20% equity in your home and to have owned the house for at least six months to qualify for a cash-out refinance. See if you qualify for a mortgage refi >>
So, what do you do with a house you can’t afford to fix?
If you can’t get the help you need to repair your home to make it livable, you can consider selling your home for cash and finding affordable movers to move into your new place.
Check out these other posts for low-income individuals and families:
SOURCES
- “Clean Energy Tax Provisions in the Inflation Reduction Act,” Whitehouse.gov. https://www.whitehouse.gov/cleanenergy/clean-energy-tax-provisions/
It would be nice to find some help in Canada for single moms on cpp disability. Do you think you can help in this area? It’s definitely needed for sure
Thnx
Hello Robyn, thanks for all the great information. However, my daughter is home on FMLA leave and her home is having a breakdown – one by one electrical outlets stop working. Sinks leaking and drains clogged. She has been unable to get any equity money because of credit issues. Do you know of any programs that will help her with home repairs in Georgia?