When your budget is small, but your home desperately needs work, the government will step in and help you out. While the process can be tedious and frustrating, the end result is that you get the results you need on the government's dime. The information below will tell you all about what is available to you.
The Rural Development office at the USDA provides grants to anyone who's income is low enough. The intent of the grants is to fix up homes which have hazards to health and safety. You have to make 50% less than the median income where you live, and also be declined for credit to make the repairs. The amount you can receive maxes out at $7,500. If you sell your home within 3 years of the grant, you may have to pay it back.
There are many grants available to veterans from the Department of Veterans Affairs. If you are disabled and need to make your home more usable, there is the Specially Adapted Housing Grant, for example. This gives you $50,000 to either adapt your current home or build a new home which suits your needs. There is also the Special Home Adaptation Grant which is solely for changing your current residence. It is only $10,000. For a veteran who has a disability not connected to their service, the Home Improvements and Structural Alterations Grant offers them $1,200 to alter their home.
The Department of Energy offers grants to homeowners who make their residence more efficient. The Energy Efficiency and Conservation Block Grant offers as much as $6,500 towards changes which make your home greener, so contact your local agency or check out Energy.gov to find out if you qualify.
The Federal Housing Administration offers loans to those who need to improve their homes. It offers up to $7,500 for fixes to single family dwellings which are owned by low-income families. There is a lot of planning to be done before applying for the loan, so you must look into what you need to do ahead of getting in touch. This includes creating plans, getting cost estimates, estimating the value post-rehab, getting appraisals, etc.
In the end, the most important thing is to do your research. You need to know exactly which rules must be followed and what burden falls on your shoulders. If you don't cross your Ts and dot your Is, you may find yourself having to repay the loan or grant when you can't afford to. Before you accept any money, know exactly what you're getting into! One who is educated is one who will not be hurt by ignorance down the road.
There are many other options available at the municipal and state levels which vary by area, so be sure to contact your local government to find out what you can take advantage of where you live. The more work you put in, the better your home will be when done. It's worth it to have a home worth living in!