Historic Home Preservation Loans in Toledo, Cleveland Dirt Cheap

The Lucas County Land Bank, created to keep neighborhoods from sinking under the weight of delinquent and abandoned properties, has grown and flourished. Current programs include grants for new roofs for low-income homeowners (only through June 2015), chance to get side lots, land for gardens, and their newest cool thing.

The Heritage Home Program gives low-cost loans to homeowners with historic homes to restore their homes along historically appropriate lines. That means no aluminum siding and other stuff that messes up historic authenticity, but free consultation with experts, recommendations to qualified contractors, and loans as low as 3.5%.

In Cleveland, the Heritage Home Program offers similar help to owners of historic residences in the metropolitan Cleveland area. They offer help with consultants, low-cost loans, and even purchasing. If you love historic homes in these two towns, they awe worth a look.  If you live elsewhere, contact your local preservation society to find out if there is a similar organization near you.

Per Reader's Suggestion--State and Local Sources of Funding to Rehab Historic Homes

We get comments, and the ones that are not pure spam (or links to Asian porn) are mighty helpful.  A recent one from Brendan Amorose, who left a note on our posting re: money to fix up your home.  He noted that besides some of the government programs listed, that private historical and preservation organizations can be another source of financial help.  So I wondered where you would find such a list, and struck paydirt here.  It has links to state preservation associations, but also local neighborhood groups, such as the Old West End Association in Toledo, as well as downtown and neighborhood revitalization organizations, and tribal preservation groups.  In these tough economic times, the groups themselves may be struggling for money, but if you fall into their service area they may be able to point out the best strategies for finding funds.  Also, never assume that any link or online directory is exhaustive. Check with your local city officials or state preservation office to double check.

Find Loans--and MAYBE Grants--To Fix Up Your Home

When thinking about where to find low-cost money for home fix-ups, think logically. If you have been reading this blog for any period or time, you know that nobody gives out free money for nothing (in fact, hardly anybody gives out free money, period). There is always something that a nonprofit group or government wants to happen as a result of giving away the money, or loaning it at below-market costs. So you have to think, what group wants my home fixed up? It's somebody who wants to have better housing stock within a particular area, or for a particular population group, or for a particular purpose, like making homes more energy efficient.  Here are the usual suspects:

1) City and state housing agencies. In cities large enough to have a housing or development department, there is usually a keen interest in keeping the housing stock safe and up to date. Often, the city is eligible for federal grants, which they use to create a pot of money to lend (at a lower cost than the banks) or create no-interest loans or even outright grants (usually reserved for the very poorest people). Contact them and ask if they have such a program. It will almost certainly be restricted by income, but the income levels might be higher than you think. It may be limited to particular neighborhoods, too. State housing authorities are another possible source of funding. While they always have home ownership programs, sometimes they have home loan programs, too.  This is a list of some of the local housing authorities, and all of the regional and state housing authorities. Remember that a local "housing authority" may merely be in charge of public housing, not private housing development (as is the case in Toledo, Ohio).  Call and ask if that's the case.  If so, try your local city government for possible programs.

3) State and local departments for the aged. These agencies may arrange loans or grants for repairs to senior’s homes. Here’s a site that will give you state and some local information.  Here's a site for a home repair program offered by the city of Detroit.

4) Community development corporations. These are nonprofit organizations created to improve some particular, defined area—a city, county, or part of one of those. If you live within a CDC area, you may be eligible for a loan or grant IF they have the money. Remember those federal grants I spoke of? They will give out the money till it’s gone. There is no nationwide directory of CDCs, but there is a directory by state.  The link for Ohio is dead, but I found a live one here.

5) IDA-giving organizations. These organizations create programs where they match your savings to create a pot of money that you can use for some defined purpose. Again, the availability depends on their resources, and if the source of their funds matches your need. They may only use funds for the purposes that they told the government they would use when they applied. And you will not immediately get the money—you must save over time. But it’s worth looking into.
6) Historic Home Funding--This website by the National Trust for Historic Preservation gives you some ideas of where to go if you primary residence is of historic value and needs preservation/rehabilitation work.  Also, see this list links for state and local sources.
7) The Department of Agriculture. They're not just about cows and crops, but rural development, too.  If you live in a rural area, and are very low income, you may be eligible for a loan or grant to rehabilitate your property.
8) Disabled veterans may be eligible for money to help purchase an accessible home or retrofit their current home.
9) A Community Action Agency. I’ve discussed these before. They are agencies set up to help the poor, and once again, you have to live within their service area. Check here to see if you live in a CAA. They may also provide free weatherization services if you have a low income.
10) HUD. While they don’t loan money, they do insure loans for home improvements. This could be worth considering if you have a hard time getting an affordable loan any other way.
10) If the improvements are meant to create energy savings, check this site to find energy incentives in your state.
11) Here's a couple of organizations that help low-income people fix their homes.