HUD Home Improvement Loans for Disabled Persons

HUD home improvement loans are provided by  private lenders who are approved and insured by the HUD. This insurance is a guarantee the HUD, Housing Authority and Urban Development,  will purchase the loan on the secondary market. The lenders are insured based on the specific details of the loan issued. They must provide loans based on the qualifications set out by the HUD.  The HUD recognizes the need for appropriate safe housing for disabled persons. There are options for home improvement loans. You may also explore housing programs for low-cost accessible homes.

HUD Home Improvement Loans

Under Title I Home Improvement legislation, HUD home improvement loans can be used to make necessary improvements such as remodeling to kitchens and baths for wheelchair access. You are able to secure these loans to lower cabinets, widen hallways and doorways, and add exterior ramps. As a general rule, FHA-insured loans have competitive interest rates and the loans are typically fixed-rate mortgages.  Since the government is insuring the loan against default, there is little risk to the private lender and thus make the loan a viable option for home ownership for many borrowers.   Most FHA-insured loans require a 3-4% down payment. In the case of many improvements to increase the livability of a home for a disabled person, a charitable organization may provide the down payment. Your community may have programs to provide these types of funds for persons in need.

Purchase and Rehabilitation Loans

The FHA will insure loans that allow the cost of rehabilitation for a home to be built into a mortgage. This means you can purchase a home that does not accommodate your disability and apply improvement costs to the initial mortgage on the home. Consolidating these debts into one will save you money and the hassle of seeking a separate home improvement loan. When you are looking for a new home, assess the changes that must be made in order to make it accessible. The Streamlined 203(k) mortgage loan is capped at $35,000 of home improvements for a single family residence. If the costs of changing things like widening hallways and doors, adding ramps, and other necessary changes is too high, this loan will not be an option.

ABILITY Homes and Independent Living Facilities

There are a number of programs available which permit you to purchase a home modeled for a disabled person at a low cost. ABILITY Awareness has partnered with Habitat for Humanity to build homes for families where one or more members have health conditions or disabilities. The homes are built by volunteers who have unique conditions and disabilities as well, uniting the community to provide safe, affordable housing options for disabled persons. The Fair Housing Act also provides independent living facilities for persons with disabilities to have an apartment or town home within an accessible community. These options may be less costly and more efficient than pursuing a home improvement loan for your existing residence.