Having a problem for improving your home`s condition because of Financial limitation. Well, that`s not a concern now, home improvement grant will help you build the home of your dreams by providing you with financial assistance.
House improvement grant helps you arrange money to renovate your house. It is in some ways similar to a loan to renovate the home that you own. The house renovation grant can be utilized for repairs, redecorate, extension, etc. of your place.
In other words, activities that can be covered under this loan include making a new balcony, extending your living space, the addition of a new room or a floor if you have a permit for construction, painting, changing the flooring work, or replacing the tiles of your washroom and kitchen, plumbing activities, etc. basically anything that comes under the home improvement scheme.
But activities like buying durable goods such as appliances and furniture for your house, installing and constructing activities, etc. cannot be covered under this scheme.
Home Development Grant serves as financial aid by authorized authority to back the development of living space, an area of land, and so forth that that will be used or designed to be used as a residence or dwelling place.
Even though it may sound fascinating but the grants are usually not easy to get. They are quite competitive and includes a lot of strict laws and regulations to be followed.
What Are The Different Types Of Home Improvement Grant?
- Personal Loan– These unsecured advances, can be utilized in any capacity for any reason. For this loan there is no need of providing any collateral security and the interest rate is determined by credit score.
- Home equity loans- These loans are approved for home-related projects in a lump sum amount. Your home is used as collateral to secure your Home equity loan. The interest rate is lower in this loan as compared to a personal loan as your house is used as collateral, but the risk is high as your home will be at stake if any default is made in payment.
- Home equity line of credit (HELOC)- This loan is the same as a Home equity loan except for the fact that in this loan you can take money out for home-related expenses as needed in small amounts, rather than as a lump sum amount.
You can choose your loan according to your requirement, need, and size of the project. You should also take into consideration the interest rate, risk involved, and up to what extent you can bear it.
Eligibility:
- For a person to be eligible for this loan should have a fixed source of income, or
- Assured pension credit, or
- you or some other member of your family aged 60 or over or has an incapacity or a drawn-out to a chronic sickness
Requirement:
The first and foremost requirement for acquiring a Home Improvement Grantis that you need to have a house, and then provide proper documentations like Property proof, income proof, residential proof, identity proof, etc.
The documentation requirement is mostly the same just like applying for any other loan approvals. You also need to provide your home`s current condition, financial requirement, estimated cost, and other information as may be required in the following procedure.
Who Are The Providers Of Home Improvement Grant?
Many online websites or institutions may claim to provide a House Renovation Grant but the most trustworthy for this type of loan are local government and the federal government.
Online sites may claim your eligibility for this loan but are mostly outdated or may ask you for certain fees to avail of the information. But even if you are going for online searches, make sure to verify the site properly and that the site you’re using is reputable and, preferably, a government website.
The Government granted loans can also be easily availed by the lower-income group and others having proper documentation and are also very highly reputed and secured ones.
Interest Rate:
The interest rate of Home Renovation Grant usually varies between 4% – 36% depending upon various factors like your annual income, credit score, and employment status. The most important factor is the credit score, the more or higher the credit score the less the interest rate and vice – versa.
Taxation:
The amount paid towards the House Development Grants for any renovation or reconstruction work is fully tax-deductible. Even if the amount is paid directly by the homeowner, tax is still deductible.
Finishing Lines
There are different kinds of Home Improvement Grant available for different categories of people such as home improvement grants for single mothers, free window replacement for lower-income families, home improvement grants for senior citizens, etc. So do proper research before applying so that you will get benefited from it.