Some of the people hardest hit by the recent recession are those who received mortgage loans with high interest rates and then lost their jobs. Although the recovery has been painfully slow for most people who managed to keep their homes through programs like HAMP (Home Affordable Modification Program), many are faced with bigger challenges. These challenges come in the form of home repairs, which they cannot afford but need to complete. Otherwise their homes are a total loss due to water damage, fire/smoke damage, wind damage, and other structural and functional safety issues. If this sounds like your situation, there are more loans and financing programs that can help.
Loan Programs for Home Repair from Home-Building Charities
A recent addition to the services that home-building charities provide, homeowner's renovation loans and project loans help current homeowners repair and care for their homes with no-interest to very-low-interest loans. The charities act as a cosigner on a loan with you, backing you when you need a loan that you cannot get yourself. In some cases you not only get a loan, but you may also be referred to a contractor to help you with the repairs on your home.
Your City's Community Renovation Project
Many cities have a community renovation and refurbishment chapter in their city government. You will have to fill out a lengthy application and provide proof of income and proof of financial hardship. These programs may also require or request a credit check, since many of these programs also act as cosigners on home equity loans with the banks. If you do not have any equity in your house just yet, you can apply to other programs offered by your city's housing authority, which may be able to help you complete repairs.
Homelessness Prevention Programs
There are also several homelessness prevention programs that provide nontraditional loans with affordable repayment terms. These loans help people who need to fix their homes or run the risk of becoming homeless. (Because structural issues, safety issues, and heating issues are all things that need to be repaired or the home is deemed "unlivable," it can put many homeowners out of their homes and onto the streets or in homeless shelters even though, technically, they have a home.) This type of loan program is most effective for homeowners that have tried everything else and applied to everything else and have been denied on all accounts. To see what type of loan you might qualify for, speak with a representative from an establishment like Weyco Community Credit Union.
Share24 November 2015
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