We often imagine ourselves enjoying a cup of nice hot coffee in a renovated version of our living rooms. Renovation and improvement of property, real estate and homes has nowadays become an important element of the real estate industry. However, this dream of improvement and renovation does not immediately become a reality due to the fact that renovation of real estate is a rather costly affair. To make this dream come true, most of the home owners resort to two very good provisions, home improvement grants and home improvement loans. Home improvement is nothing but the process of renovation of a real estate or any property. It should be noted that real estate that has a commercial purpose is not eligible for these grants and loans. Only residential buildings are aided by home improvement grants and loans.
Home Improvement Grants
Home improvement grants are given by government agencies to help the people. The agencies that provide grants in the United States of America term it as “an award in the form of a financial assistance from a federal agency, to a recipient to carry out a public purpose of support or stimulation, authorized by a specific law, passed in the United States of America.” Some people find this description pretty vague, but grants can also be defined as ‘financial aid given by the government to the people for the betterment of society’. The concept of home improvement grants is thus parallel to educational or medical grants. In United States of America itself there are approximately 26 federal agencies that provide grants to people belonging to over 1,000 different categories. The grant has to be spent for the specific purpose that it has been issued for. There are also several classifications and sub-classifications in the different types of home improvement grants. Some of the home improvement grants are specifically for senior citizens who have crossed 60 years of age and other grants are for people who belong to low-income groups. In some regions in the United States of America, schemes for grants are also given especially for Amerindians.
Home Improvement Loans
Home improvement loan is the second type of financial provision that can be availed by the home owners, for renovation. The home improvement loan is a secured loan, meaning that it is backed by a collateral. Most of the time the collateral is the real estate itself that is under renovation. In some nations, the rate of interest on this credit is subsidized by the government.
The process of sanctioning of the home improvement loan is rather long. After an individual applies for the loan, the lender of credit, undertakes the sanctioning process wherein a check of the credit history is done. Many factors, like, the location of the real estate, current condition, anticipated life, etc. are also considered. Among these factors, one of the most important factor that is considered, is the current market value of the real estate.
There are several important advantages of availing loans for home improvement. The process of improvisation and renovation, improves the life of the residents. The home becomes more comfortable and also convenient to occupy as all the due repairs are conducted during the improvisation. In the real estate market, the value of such a property always appreciates due to the fact that the renovation of the property increases its life and its market standing. Availing loans and grants for home improvement thus always proves to be healthy for one’s real estate.
Rating: 3 out of 5