How to Get a Government Home Improvement Loan. If you bought a home a few years ago, perhaps it's time for some home improvements. Maybe there is a safety issue, functional issue or just a cosmetic thing that you want to fix. Unless you have a lot of funds in the bank, you are going to have to figure out financing options. The government offers several loan options for these kinds of home improvements.
Make a list of all the home improvements your house needs. If you have a long list, you may not qualify for the amount need to fix them all. Once you have your list, reorganize its order to prioritize which enhancements should be done first.
Discover what's available. The website of the U.S. Department of Housing and Urban Development (HUD) describes many of the programs that are offered in this country (see Resources). There are also local and state loan programs available in most areas.
Do further research on the loan options you'd actually qualify for. Most government home improvement loans have geographic and income limits, so you would need to meet those guidelines in order to qualify. There are also loans available specific to certain projects (energy efficiency or removal of health and safety hazards).
Go to an approved lender and fill out the appropriate paperwork. Someone there might be able to help you out if you run into problems. There are also non-profit and government-run agencies that can help, like Community Action Agencies and state Housing Development Authorities.
Wait for the loan approval to go through underwriting. Once you are approved, you can buy the materials or hire the contractors you need to do your projects.