Home Improvement Grants for Your Next Project

A home improvement grant also called a “home repair grant,” is a type of financial aid issued by the government at the federal, state or municipality level. It’s designed to help homeowners in that region make select improvements to their properties.

As long as the applicant and the project meet certain requirements, a home improvement grant does not need to be repaid.

One of the primary problems when doing a home improvement project is the cost to do the project correctly. Luckily, there may be a grant that will help you offset the expense. Dozens of government-sponsored home improvement grants offer money to homeowners making selected updates to their properties. Of course, not everyone—nor every project—will qualify for grant funds.

Grants are highly competitive, and many are designed for specific improvements that ensure the home is safe, accessible, livable and non-hazardous to those on the property and in the community. Read on to see if a home improvement grant can help you achieve your goals.

Requirements & Eligibility

Eligibility requirements vary by the grant. For the most part, grants will have requirements pertaining to the homeowner’s income, their location and the projects the money can be used on.

Just like with your mortgage application, you will need to produce documentation to prove your income. You may also need to prove your financial need, as well as offer assessments of your home’s conditions, your estimated project costs and more. Make sure you know the full scope of requirements for each grant you apply for. Remember, most grants are very limited in number and only a few homeowners are chosen.

Where to Find Home Improvement Grants

There are several places you can find available home improvement grants. Your best bet is to start with your local HUD office (Housing and Urban Development). HUD offers grants like the HOME Investment Partnerships Program for low-income homeowners, as well as various types of home repair loans. Visit HUD.gov to find the office in your area.

You can also look to the National Residential Improvement Association for grants. Just fill out the NRIA’s brief application form, and tell them about your property, the home’s history and the projects or improvements you’d like to take on. An NRIA specialist will get back to you with potential grants you may be eligible for. They might also include options for tax credits, home improvement loans, discount programs and local incentives that can help you cover—or at least reduce—the cost of your projects.

Finally, if you’re in a designated rural area, you can also apply for a home improvement grant with the U.S. Department of Agriculture. These grants offer up to $7,500 toward addressing health and safety hazards at the home or improving its accessibility.

Home Improvement Grants vs. Other Options

Grants aren’t the only way you can fund your much-needed home improvement projects. You can also use a loan, refinance your property or leverage the equity in your home.

The Federal Housing Administration’s 203K loan is a popular choice for homeowners looking to improve their properties. The 203K improvement loan lets you borrow cash to use toward your home repairs and projects, typically at a low rate. There are also low-cost loans from the USDA and HUD if you meet certain location and income requirements.

If you’ve lived in your home a few years and have built up some equity, you can also look to home equity lines of credit (HELOCs), home equity loans or a cash-out refinance. Make sure you shop around first for the best rates. You do not have to use your current lender when refinancing or taking out a home equity loan.

In the event you’re making green or eco-friendly improvements to your home, you may also qualify for certain green energy grants or tax credits that can help offset your costs. For information on this, check out EnergyStar.gov, contact your city or state energy commission and call up local energy companies. Many will offer grants or even reduce your monthly costs when you add certain energy-saving upgrades. The PACE loan is also a good option for green improvements if you’re looking to borrow funds.

How to Increase Your Home Value

My first year of home ownership looked something like this: three bathroom updates, basement renovation, updated backyard landscaping and a heck of a lot of paint. Although my husband and I intentionally planned on most of those projects, we also started making a wish list of other things we wanted to do, like expand the master bathroom or swap carpet for hardwood floors, which got me thinking—there’s a fine line between making updates that add immediate resale value and investing in choices with zero ROI down the road.

A 2018 Homeowner Protection Survey by Chubb, which queried more than 1,200 U.S. homeowners about their approach to property, found that 58% of homeowners will “definitely” or “probably” undergo a home renovation or improvement project over the next 12 months. Of those who plan to do so, 65% plan to spend at least $10,000, with 20% budgeting between $10,000-40,000 and 15% spending more than that.

But as you make decisions regarding home upgrades, renovation and major projects, it’s vital to pay close attention to the market value of your home and the homes around you. “Pay attention to what homes top out for in your neighborhood,” advises Leneiva Head, real estate broker and founder of Welcome Home Realty in Tennessee. “If they top out at $500,000, and yours is already worth $475,000, you may lose money if your project is more than $25,000. Even that bears consideration because if you spend $25,000, then you only break even. Check the market against your home’s current value, then plan your renovations.”

Unsurprisingly, homeowners are most likely to spend money renovating or improving kitchens and bathrooms, according to the Chubb data. Here’s why, along with two additional smart ways to increase your home value in the first year.

1. Modify the floor plan or add square footage.

“If you’ve purchased a home that’s closed off and choppy at a time when most people prefer a more open design, then removing a wall here or there will increase the value within a year,” says Head. “For example, a couple bought an older home with a wall between the kitchen and the living room. They removed the wall (leaving about two feet on each end), sanded the hardwood floors, and added an island in the kitchen—which created the open look people prefer.”

Or, simply add square footage through a second bathroom, family room or four-season room. Bigger homes usually lead to higher values, and that’s something buyers tend to notice. Meghan Chomut, a certified financial planner who specializes in supporting families and property owners, says adding another decent-sized bedroom alone can broaden your buyer list if you sell, since many people will always consider more bedrooms than their family requires, but rarely consider looking at properties with less. Finally, you can also focus on creating additional living space, such as finishing a basement, building a deck or converting an attic.

If you’re not sure where to start, Remodeling magazine offers a great “Cost versus Value” report, which analyzes what you’ll pay for various upgrades alongside how much you can expect to recoup upon selling. “The doubling of homeowner equity over the past six years has given people the financial wherewithal, and the confidence, to make investments in their homes,” says Hunter. “This is showing up now as homeowners take on projects that they may have previously put off, or as they indulge themselves in discretionary upgrades that they can now afford. People are showing a greater tendency to stay in the home they already have and improve it rather than moving.”

2. Update kitchens and bathrooms for the greatest return on investment.

Brad Hunter, chief economist at HomeAdvisor, notes that millennial homeowners are now twice as likely as baby boomers to tackle kitchen and bathroom remodels. Based on findings from HomeAdvisor’s annual True Cost report, most millennials have compromised on the size and condition of their first homes, and many purchase older homes that need repairs in order to be able to afford home ownership at all. Those stats combined with the fact that most people perceive bathroom and kitchen updates as most impactful on home resale value—and kitchens and bathrooms are high-use, high-traffic rooms—results in a high level of interest for these types of projects. Also, says Indiana mortgage banker Corey Vandenberg, appraisers tend to look for updates in these areas first, due to the appeal for potential buyers.

Kitchens will give you one of the biggest returns on your investment, says Aaron Bowman, a realtor in Connecticut. Start by replacing old appliances with new, and make sure all appliances match if possible. You can reface or replace outdated cabinets, as well as revive old flooring with newer tile or vinyl options. And even very simple updates, like a backsplash or new appliances, can be a valuable place to put your money, adds Des Moines-based realtor Sara Hopkins.

“For example, if you just bought a home with standard cabinets and Formica countertops in the kitchen, then a simple swap out for quartz or granite will benefit you in your efforts to realize a return on your investment,” says Head. “Add gourmet-style cabinets and swap out the fluorescent overhead light for monorail lighting and you’ve got a winner.”

With bathrooms, Bowman says a complete renovation usually isn’t required. You can tackle inexpensive elements like vanities, toilets and fixtures, and still get the look and feel of an update without breaking the bank.

3. Prioritize curb appeal with landscaping.

“Landscaping is probably the best and easiest, most affordable way to increase your home value in the first year,” says Hopkins. It makes sense—healthy trees, blooming flowers or plants and neatly trimmed lawns make a house, well, prettier. Cassy Aoyagi, president of FormLA Landscaping, says some of the most impactful ROI can be earned outside of the home, and shares three easy, low-cost steps homeowners can take to make it happen.

  • Strategically plant native trees, which can reduce energy costs by as much as 50%, plus raise the value of neighboring homes
  • Plant young shrubs and leave space for it to grow to full size, as this will help cool your property
  • Replace annual plants or flowers with perennial foliage to help cut costs

What not to do: Aoyagi warns against installing synthetic turf and gravelscaping, as both can increase energy costs and degrade environmental resilience, as well as removing established trees.

How to Save Energy in the Summer

Most people expect higher energy costs in the summer. We crank up the air conditioning to get out of the sun; the kids are home from school and spend all day on their electronics; and, when you finally convince them to play outside, you find yourself washing extra loads of bathing suits, beach towels, and muddy clothes. The warm weather comes with a price. But, with a little preparation, you can manage your energy use wisely and cut down on your bill. We’ve shared 7 tips below that will help you use less energy in the summer and save you valuable money on your utilities.

1. Wash with Cold or Warm Water

 Avoid using hot water whenever possible. Because 90% of the energy used by your washing machine goes toward heating the water, doing your laundry on either the cold or the warm cycle will save you a tremendous amount of electricity. When you’re done, take advantage of the warm weather and dry your clothes outside instead of putting them through the dryer. You’ll both save energy and avoid raising the temperature of your home with heat-generating appliances.

(Hint: the same logic applies to dishes as well. Use cold water and let them air dry instead of running them through the drying cycle.)

2. Be Smart with Your Thermostat

It feels good to blast the AC after getting home from a workout, time spent outside, or just a generally sweltering summer day. But it probably won’t feel so good later when you see that your utility bills have skyrocketed. Keep in mind that for every degree you raise your thermostat above 72º, you save up to 3% of your cooling expenses. Try setting your thermostat to 78º, or as high as your comfort allows.

When you’re away from home, set the temperature even higher or, if it’s not too hot, turn it off altogether so you don’t waste air conditioning on an empty house. If you install a smart or programmable thermostat, you won’t have to go through the trouble of manually changing the temperature each time you leave. These thermostats will automatically adjust your home’s climate control while you’re away.

3. Keep Your Home Easy & Breezy

Another easy way to cut down on cooling costs is by using fans. Ceiling fans are great for cooling an entire room, and many homes already come equipped so there’s no purchase necessary. Even if you don’t have one, portable fans are inexpensive and readily available at any home goods or big-box store. A good fan will allow you to raise your thermostat 4º while maintaining the same level of comfort. If you don’t mind the light breeze, go ahead and lower the temperature on your AC because fans can be very effective.

4. Consider LED Lighting

After you’ve blocked out the sun, you might find yourself turning on more lights than you normally do. Be careful which lights you choose, though, because incandescent bulbs actually turn 90% of the energy they use into heat. Consider replacing your incandescent bulbs with LED bulbs, which operate at a lower wattage and produce only half as much heat. LED bulbs also use 75% less energy and last 50 times longer than traditional bulbs, saving you money on electricity and replacement costs.

5. Use the Barbeque

Trying to cook in a hot, steamy kitchen can be unbearable, especially when it’s hot and steamy outside as well. Kitchens are full of heat-producing appliances: ovens and stoves can raise your kitchen’s temperature up to 10º. To save yourself the sweat (and the higher utility bills), try using the microwave whenever possible since it uses just one-third the energy that an oven does and produces only a fraction of the heat. Another great way to take the heat out of the kitchen is to cook outdoors. Pop some burgers on the grill or invite some friends over for a barbecue. You can enjoy the great weather while you avoid raising the temperature in your home.

6. Keep Track of Your Electronics

When you place heat-generating devices such as lamps or TVs near air-conditioning thermostats, you can trick them into thinking the room is hotter than it really is. Your thermostat will sense the heat from these devices and spend extra energy trying to cool the house down. Be mindful of where your thermostats are and try to keep electronics away from them. Devices like computers, curling irons, hair dryers, stereos, and televisions heat up your house as well, so make sure they’re turned off when they’re not being used.

7. Keep the Sun Out and the Cool Air In 

The summer sun is great for tanning, great for your mood, and great for beaches, picnics, and sunsets. However, it’s not so great if you want to keep your house cool. Sunlight coming through your windows will heat up your home, causing you to spend more on air conditioning. Try drawing the blinds during the hottest parts of the day, especially if your windows are facing south. You can open your windows again at night when it gets cool; this will allow you to turn off your air conditioning. Just don’t forget to close them again in the morning to trap in the cool air.

Also, if you’re planning to invest in landscaping, keep in mind that trees provide great natural shade. Strategically placed shrubs, trees, and vines can block sunlight from your windows, roof, and walls, saving you $100 – $250 per year in cooling costs.

Home Value: How to Improve Your Home’s Worth

With prices for housing surging to new highs this year in many parts of the United States, you may be toying around with the idea of selling your home. After all, you could sell for top dollar and pocket the difference, then move somewhere cheaper with a lower cost of living.

Or maybe you plan to stay exactly where you are, in the home you know and love. Regardless of how much your home is worth, sometimes it’s easier to just stay put — even if your home isn’t exactly what you want.

Some improvements can make your house easier on the eyes. Others can increase your home’s utility, make it bigger or make it more comfortable for your growing family.

Whether you want to build equity or sell for top dollar, plenty of home improvement projects are worth considering. The real estate experts we spoke to said the following projects may provide the most bang for your buck.

1. Upgrade exterior doors

When it comes to adding value to your home, replacing an old front door can also work wonders, Wiedman says. He says in the late ’90s, he and his wife replaced an old, ugly door with a solid mahogany door with a frosted, oval piece of lead glass. He stained the door himself to save money, and the result was “simply stunning,” he says.

Randy Oliver, president of Hollywood-Crawford Garage Door Co., also says to remember your garage door when it comes to curb appeal.

“The front of the home is the first thing you, your neighbors and prospective buyers will see,” he says. “Garage doors often take up the most amount of space on the front of your home, so installing a modern glass panel door or a rustic wood door will dramatically improve your home’s appearance.”

2. Spruce it up with fresh paint and flooring

Paint is magic, and that’s true whether you’re upgrading the paint inside or outside your home. A fresh coat of paint can make even dated exteriors and interiors look fresh and new, and it’s not that expensive, either.

Timothy Wiedman, a former college professor and personal finance expert who has flipped homes over his career, says you should start by painting any rooms with an “odd” color scheme.

For example, did you let your then-11-year-old daughter paint her bedroom “hot pink” 16 years ago? If so, that’s a good place to start.

Rob Fountain, a real estate agent with Keller Williams Partners in Colorado Springs, Colorado, says that “everyone loves newer carpet and fresh paint.”

Very few homebuyers, he says, are looking for a fixer-upper. Instead, they hope to move right in.

“Moving and buying a house is stressful enough,” Fountain says. “They don’t want to have to touch up paint and rip out carpet before they move in.”

3. Clean and declutter

According to a 2019 survey from HomeLight, deep cleaning and decluttering can add more than $4,000 to a home’s resale value, on average. If you don’t plan to move, you can also benefit from making better use of your space, getting more organized, and having less clutter to stress over.

Cleaning and decluttering is inexpensive, but it still requires a lot of work. Go through cabinets and closets so you can make a donation pile. Clean out drawers and other storage areas of your home as well, making sure you’re not keeping anything you don’t need or want.

A deep clean and subsequent cleanings for upkeep can also make your home more attractive and more livable. And when you go to sell, buyers prefer a clean, pristine home with almost no exceptions.

4. Make your home more efficient

There are many ways to improve your home’s efficiency, and they don’t all involve tens of thousands of dollars in upgrades. Scott Ewald of Trane, an HVAC company, says installing a smart thermostat is a great way to improve efficiency and save money, for example.

“The right smart thermostat will allow a homeowner to control their home’s climate from anywhere, giving them the power to manage energy costs regardless of whether they are sitting on the couch or away on vacation,” he says. “Such investments in home tech – particularly when connected to the HVAC which is the largest mechanical system in the home – provides a strong selling point and highlights the home’s overall comfort, functionality, energy efficiency and convenience.”

Other ways to improve your home’s efficiency and value include replacing old, leaky windows, buying energy-efficient home appliances and adding insulation to your home.

5. Add usable square footage

Adding more usable space to an existing home can make a lot of financial sense, and that’s especially true in areas with limited available real estate where land and space may be finite.

Benjamin Ross, a Realtor in Corpus Christi, Texas, says that homes are valued and priced by the livable square feet they contain, and the more livable square feet, the better. As a result, adding a bathroom, a great room or another needed space to a home can increase function and add value.

Adding a separate mother-in-law suite is also a great idea, Ross says. “Most homes do not have this feature, so adding one sets you apart from the competition when it is time to sell.”

6. Work on your curb appeal

HomeLight’s second-quarter 2019 survey of real estate agents found that the exterior of your home may play a bigger role in your home’s value than you think. The survey showed that 76 percent of top real estate agents nationwide agreed that improving curb appeal is the No. 1 step a homeowner can take to boost their home’s marketability.

According to their figures, basic lawn care like cutting the grass, fertilization treatments and weed control can add $1,000 on its own. If you’re wondering how to increase the value of your home, these low-cost measures can be a good starting point.

Joe Raboine, director of residential hardscapes with Belgard, says there are plenty of other ways to boost your curb appeal. An overall landscape upgrade can go a long way, for example.

“Installing a front walkway of pavers along with stone planters, shrubs and mulching will cost an estimated $6,000, and the NAR (National Association of Realtors) estimates you’ll recover $5,000,” he says.

A new paver patio or outdoor kitchen can also add to your home’s value and make your property a lot more enjoyable when the weather is nice.