Improving your Home

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$15,000 To Improve a New Home..

The Pennsylvania Housing Finance Agency’s Purchasing Improvement program allows borrowers to make up to $15,000 in home improvements in conjunction with the purchase of a home with a PHFA first mortgage loan. Eligible improvements include repairs, alterations or modifications to improve the basic livability, accessibility, energy efficiency or safety of the property. See http://www.phfa.org

Home Repair Grants and Homes At Below Market Cost…

he Arlington Housing Corporation in suburban Washington, DC buys homes, which are in poor condition and renovates the home to sell to qualified first time home buyers at below market cost. Low interest loans and grants are available for home remodeling as well as assistance with down payment money. See ahc@ahcinc.org

Government Gives Away FREE Land...

In order to attract people, the town of Marquette, Kansas is giving away home building lots worth about $8,000. There are about 10 communities in Kansas that are making this offer. For information see http://apnews.myway.com/article/20040323/D81G8K7O0.html

This is only a sample of the 4,000 programs that are available to buy a home or investment property and described in our new book "Free Money For Real Estate" at leskobooks.com

Grants, loans, and loan guarantees are also available from the Federal Government for those looking for money to fix up their own home or fix up an investment property. A sampling of these programs are described below. When the description refers to the Catalog of Federal Domestic Assistance you can see the program described in more detail at www.cfda.gov.

1) $200,000 to Fix Up Homes In The Country...

Called “The Farm Labor Housing Loans and Grants Program” and referred to as Program #10.405 in the Catalog of Federal Domestic Assistance, this program provides decent, safe, and sanitary low-rent housing and related facilities for domestic farm laborers.
The loans and grants may be used for construction, repair, or purchase of year-round or seasonal housing; acquiring the necessary land and making improvements on land for housing; and developing related support facilities including central cooking and dining facilities, small infirmaries, laundry facilities, day care centers, other essential equipment and facilities or recreation areas. Funds may also be used to pay certain fees and interest incidental to the project. Restrictions on the use of funds are: The housing must be of a practical type and must be constructed in an economical manner and not of elaborate material or extravagant design. Housing financed with labor housing loan or grant funds must be occupied by domestic farm laborers and their families.
Contact your local office of the U.S. Department of Agriculture Rural Housing Service at
http://offices.usda.gov/scripts/ndISAPI.dll/oip_public/USA_map

2) $100,000 to Fix Up Homes In the Country

Called “The Very Low Income Housing Loans Program” and referred to as Program #10.410 in the Catalog of Federal Domestic Assistance, this program helps very low, low-income, and moderate-income households to obtain modest, decent, safe, and sanitary housing for use as a permanent residence in rural areas. Direct and guaranteed loans may be used to buy, build, or improve the applicant's permanent residence. New manufactured homes may be financed when they are on a permanent site, purchased from an approved dealer or contractor, and meet certain other requirements. Under very limited circumstances, homes may be re-financed with direct loans. Dwellings financed must be modest, decent, safe, and sanitary. The value of a home financed with a direct loan may not exceed the area limit. Direct loans are made at the interest rate specified in RD Instruction 440.1, Exhibit B (available in any Rural Development local office), and are repaid over 33 years or 38 years for applicants whose adjusted annual income does not exceed 60 percent of the area median income, if necessary to show repayment ability. Payment assistance is granted on direct loans to reduce the installment to an "effective interest rate" as low as one percent, depending on adjusted family income. Payment assistance is subject to recapture by the government when the customer no longer resides in the dwelling. There is no funding provided for deferred mortgage authority or loans for deferred mortgage assumptions. Guaranteed loans may be made to refinance either existing RHS Guaranteed Housing loans or RHS Section 502 Direct Housing loans. Guaranteed loans are amortized over 30 years. The interest rate is negotiated with the lender.
Contact your local office of the U.S. Department of Agriculture Rural Housing Service at
http://offices.usda.gov/scripts/ndISAPI.dll/oip_public/USA_map

3) $300,000 For People Who’s Homes Were Hurt By A Disaster

Called the “Mortgage Insurance – Home For Disaster Victims Program” and referred to as Program #14.119 in the Catalog of Federal Domestic Assistance, this program helps victims of a major disaster undertake homeownership on a sound basis. Disaster victims are not required to meet the 3 percent minimum investment requirements. In order to qualify for assistance, the formerly occupied home must have been in an area designated by the President as a disaster area, and it must have been destroyed or damaged to such an extent that reconstruction or replacement is necessary.
Contact your local office of the U.S. Department of Housing and Urban Development at
http://www5.hud.gov:63001/po/i/netlocator/

4) $100,000 To Buy Or Fix Up Houses In Older Areas Of A Town

Called the “Mortgage Insurance – Housing In Older, Declining Areas” and referred to as Program #14.123 in the Catalog of Federal Domestic Assistance, this program helps in the purchase or rehabilitation of housing in older, declining urban areas.
Contact your local office of the U.S. Department of Housing and Urban Development at
http://www5.hud.gov:63001/po/i/netlocator/

5) $5,000,000 To Build or Fix Up an Apartment Building

Called “Mortgage Insurance For the Purchase or Refinancing of Existing Multifamily Housing Projects”, and referred to as Program #14.155 in the Catalog of Federal Domestic Assistance this program provides money for existing multifamily housing projects, whether conventionally financed or subject to federally insured mortgages at the time of application for mortgage insurance. Only projects not requiring substantial rehabilitation are acceptable under this section. The estimated cost of required repairs may not exceed 15 percent of the estimated value after repairs or $6,500 per unit adjusted by a high cost factor, whichever is greater and may not involve the replacement of more than one major system. The program has statutory per unit mortgage limits which vary according to the size of the unit, the type of structure, and the location of the project. There are also loan-to- value and debt service limitations. Prevailing wage requirements under the Davis-Bacon Act do not apply to this program. Contact your local office of the U.S. Department of Housing and Urban Development at
http://www5.hud.gov:63001/po/i/netlocator/

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