Start Here

Enter your zip code

Get your Single Mother Grants Benefit Guide


A home improvement loan is a non-collateral loan and this is what makes it attractive to borrowers.Home improvement loans often takes less time to process than home equity loans.

If your home is in need of repairs or you simply want to make some enhancements to make it more suitable to your living needs or to increase its market value, there are several types of home improvement loans available. These are:

The 203 (k) Rehabilitation Program

- A 203 (k) loan is available through approved lenders nationwide. The program is used to purchase a home and renovate it, or to purchase a home and move it onto a new foundation on the mortgaged property, then rehabilitate it, or to refinance an existing mortgage and repair the home. Minor repairs or luxury improvements are not acceptable. Eligible improvements include structural alterations, changes for improved functions and/or elimination of health and safety hazards. For example, roofing, flooring, repairs of termite damage and installation of solar hot water systems are considered eligible home improvements, whereas room repainting and a home theatre installation are not.An eligible property (house or condo unit) must be a one-to-four family dwelling that has been completed for at least one year prior to the application. The number of units on the site must not violate the provisions of local zoning requirements.

Title I loan

–This loan is used to finance light to moderate property repairs for homeowners, landlords or people purchasing property under a land installment contract. The loans are available through HUD's approved lenders. HUD does not deal with homeowners directly. The maximum loan amount under this loan is $25,000 for a single-family house, $17,500 for a manufactured house on real estate property, $7,500 for a manufactured house on personal property, and approximately $12,000 per living unit for a multi-family structure (up to a total of $60,000).Homeowners must have good credit in order to be eligible for a Title I loan.

Indian Home Loan Guarantee Program

- Eligible recipients for this loan are Native Americans or Alaskan natives who are members of a federally recognized tribe, a Tribally Designated Housing Entity (TDHE) and an Indian Housing Authority (IHA). The loan isused for renovation of existing housing, construction of new housing and refinancing indebtedness of existing housing.To apply for an Indian Home loan, an eligible recipient must contact a HUD-Approved Section 184 lender.

Indian Housing Block Grant Program

- The Indian Housing Block Grant Program (IHBG) offers home improvement grants for Native Americans who are members of a federally recognized tribe. The program allows tribes or tribally designated housing entities (TDHEs) to provide affordable housing activities on a reservation or Indian area such as housing development, housing services to eligible families and individuals, and other activities that attempt to solve affordable housing problems.In order to receive funding, an eligible recipient must submit an Indian Housing Plan (IHP) to HUD each year. At the end of each year, recipients must also submit an Annual Performance Report (APR) showing their progress in meeting the goals and objectives included in their IHPs.

Home Repair Loan and Grant Program

-The Home Repair Program provides loans at a 1% interest rate for rural residents with very low income, who own a house in need of repair. The goal of this program is to help low-income families have a safe and sanitary home. Grants are available for senior homeowners (over 62). The loan amount can be up to $20,000, and the grant amount up to $7,500.

Home Equity Line of Credi

- If your home’s value has not declined substantially with the real estate crash, you may be able to use the equity in your home to secure a home equity line of credit. A home equity loan enables you to draw from the difference between the current mortgage loan balance and the amount of principal that has accumulated.For example, if your house is worth $300,000 and the mortgage loan balance is currently $200,000, then you could potentially be eligible for a home equity line of credit for $100,000. The interest on this loan is tax deductible.

Mortgage refinancing

- This is becoming a popular choice for long time homeowners who want to make improvements to their homes such as updating a kitchen with granite countertops, replacing old appliances with stainless steel ones and installing new cabinetry.With interest rates near all-time lows, homeowners with higher fixed-rate or adjustable-rate mortgages are refinancing at lower rates and taking some of the cash out from the principal balance to increase their home’s living appeal.Rather than “trading up” to a newer or larger home, refinancing enables homeowners to improve their existing home to their liking.

Personal loan

- A home improvement loan may also be secured through a personal loan but most reputable lenders require the borrower to have very good credit since a personal loan is typically not secured by collateral and is based on the borrower’s likelihood of being able to repay the loan.


- Many states and the Federal Housing Administration (FHA), which is part of the Department of Housing and Urban Development (HUD) also offer grants for home improvement to low-income individuals or to borrowers who purchase/refurbish homes in areas designated for community development. HUD also provides housing grants to low-income residents.

No matter which loan you choose, the funds borrowed must be used to repair, refurbish, renovate, or improve your property.