Government Grants for Low-income Homeowners

Rural Home Grants

The Rural Development division of the U.S. Department of Agriculture offers grants for homeowners in rural areas. The Individual Water and Waste Water Grant program offers grants up to $5,000, at the time of publication, to help homeowners install plumbing, connect water or waste water lines or pay hook-up fees for utility services. The program only offers funding to homeowners living in certain communities in Texas, Arizona, New Mexico and California. The USDA's Rural Repair and Rehabilitation Loans and Grant program helps very low-income households pay for home repairs or renovations related to safety and health hazards. The program only offers grants to homeowners 62 years of age and older. Senior citizens who qualify can receive grants up to $7,500, or a maximum of $27,500 in a combination of grant and loan assistance.

Certain state programs offer grants to help homeowners pay for home energy improvements. New York State, for example, provides subsidies for homeowners to help pay for energy improvements using products approved by the Energy Star program. The program extends eligibility to homeowners with a household income at or below 80 percent of the statewide or local median income. Participants can receive subsidies up to 50 percent of improvement costs, with a cap of $5,000 per household, at the time of publication. Low-income homeowners also may qualify for the Weatherization Assistance Program, which offers free energy-related home improvements. The U.S. Department of Energy funds the WAP, which local government and nonprofit agencies administer.

Few home improvement grant programs remain. However, a limited number of local and state governments offer grants to help eliminate blight and improve living conditions in low-income communities. The South Central Kansas Economic Development District, for instance, sponsors the Housing Rehabilitation for Low-Income Areas program, which offers funding for homeowners living in certain communities in Kansas. The program awards funds to counties and cities, which in turn make funds available to homeowners. To qualify, the homeowner's property must need improvements to eliminate safety or health hazards, and the program typically caps funding at $2,000 per homeowner.

Few government programs offer grants to help homeowners make a down payment for a new home, with the exception of a limited number of programs sponsored by local governments. Mobile County, Alabama, for instance, offers a down payment program for first-time home buyers. The program makes grants ranging between $1,000 and $10,000, at the time of publication, to home buyers who provide at least $500 of their own money toward the down payment on a home. Candidates must meet income and residency requirements, and the program only offers funding for single-family homes.