Home Improvement Made Easy with Home Repair Loans

2007-10-15 12:53:47

( Financial )



Different Kinds of Repair Loans

Although the common word is REPAIR, these repair loans differ from each other in terms of purpose.

Credit repair loans are meant to help you to repay your existing and past due obligations in order to clean up your credit record.

Debt repair loans are similar to credit repair loans in that they also help you to restructure all your obligations and consolidate them all into one place for easier management and affordability.

Then there is the home repair loan, a special type of loan for improving and modernizing your home.

Home Repair Loans

This type of loan serves homeowners who previously bought homes but were not able to make necessary repairs or remodeling due to budget constraints. If you bought a home under these circumstances, you may be occupying it in its unrepaired state. You had to make do with broken cabinets, worn-out carpeting, leaky faucets and non-working doorbells. Unfortunately, you may also be putting up with other existing defects and features that may pose health and safety risks for yourself and your family.

Also known as rehabilitation loans, home repair loans have rock-bottom interest rates and medium-term repayment periods.

Standards of Home Repair Loans

You qualify for this type of loan if you live in a rural area and are earning low levels of income, and if you were unable to afford other types of home loans. If you are over a specified age limit, you may even qualify for a grant. However, you forfeit the grant if you sell the property in three years or less.

All home improvement projects must meet local building codes and standards. Repairs to correct water and sewage disposal systems need approval from local housing authorities.

Priority will be given to home improvement projects that aim to correct existing sanitation and safety hazards, especially defects in insulation, bathroom functions, ventilation, stairways and kitchen fixtures.

Applying for a Home Repair Loan

This type of loan is federally funded, so you need to approach your nearest rural development office to apply for the loan. You must be able to show proof of your income and age, as well as detailed job order listing all the improvements you will be making with the home repair loan proceeds.

Approval of a home repair loan typically takes about one to two months.


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