Interest Free Loans to Fix Homes in Detroit

Fixing up your Detroit home just got easier. In the state of the city address, Mayor Duggan announced a program to give zero interest loans to Detroit homeowners who have owned their homes at least six months before applying. Low income homeowners are qualified within any area in the city. Within certain qualifying areas, all homeowners may qualify.

 

However, you must have a minimum credit score of 560. If you don't, you can get credit counseling to help improve your credit. The loans are between $5000 and $25000. The loans concentrate on health and safety improvements.

Applications will be available in March, online or at the city's recreation centers, neighborhood intake centers, and neighborhood district manager's offices. For more information, call the Detroit Planning and Development Center at 313) 224-2560.

Opportunities to Buy a House at Auction in Detroit

There are a number of opportunities to be an urban homesteader in Detroit, a city struggling to get back on its feet. One is the auction of properties by the Detroit Land Bank Authority, which has taken possession of hundreds of homes deemed to be repairable.  They are now auctioning off these properties.

These are not for lollygaggers: according to the ground rules, you must either have a contract with s contractor to make the house loveable within 30 days of purchase, or have bought the materials to DIY.  You must have a certificate that the house is habitable within 6 months--9 months of it's an historic home.

But there are sources of financial aid, since many homes will have rehab costs that will dwarf their auction price. The Land Bank has a list of such deals. They include forgivable loans for homes in the Marygrove area, financing for homes in the Boston-Edison and East English Village, and more. And side lots are for sale for $100.  Check it out.




 

What About the HARP 2.0 Program for Refinancing? Are There Other Programs, Too?

HARP (the home affordable refinance program) is getting a lot of attention nowadays, since it's more liberal than it used to be.  Who does it help?  It helps people who have a Fannie Mae or Freddie Mac-owned loan (you can find out if that's you by looking here), and meet other qualifications.   

Since you have to have a good repayment record (no missed payments in the last 6 months, and no more than one in the last 12 months), it's not for people between the devil and the deep blue sea, just people who are underwater and would like to get a better deal.  While you are considering it, keep in mind that besides the government qualifications, the lenders may have qualifications of their own, and they may vary from one to another.   So if you get turned down by one, check out other eligible HARP lenders. 

What if you need help, and don't qualify for HARP?  There is a list of other federal mortgage aid programs by the federal government.   You can call housing counselors around the clock at 888-995-4673.  For a face-to-face talk with a reputable person in your area, see the list of HUD-approved counselors.

If You're a Writer, Write Your Way to a New House in Detroit

Sure, there are lots of fancy schmancy residency programs out there for writers, and you can find them in directories and google searches.  But in what other residency are they giving away a whole house?  Why, in Detroit, and you have less than a week to write your way to a new house. 

The program is Write a House, in which aspiring writers of low or moderate income (and some writing history) can win a refurbished house that was rescued from foreclosure and restored.  Not for a year or six months--for keeps, to someone talented enough to win it and who wants to be an active part of the literary community of Detroit.  To be eligible, you must be a U.S. citizen, fall into the income limits, and submit your strongest writing before a panel of judges.  The full qualifications are here. The house is situated on the east side, north of Hamtramck. 

The point of all this is twofold:  to teach young people construction and restoration work while they work on their GEDs, and to make it financially attractive for writers to settle down in the D.  If you miss this run of the contest, they have a couple more houses that Write a House is planning to rehab and give away in the future.  To the right writer.

Financial Help for Builders of of Low-Income Housing

Patrons come by the reference desk on a regular basis, looking for free money and money for businesses.  Some in particular are looking for funds to build low-income housing.  I am not an expert in low-income housing financing, just in how to find the sources of information.  But in a couple of ways, this is like looking for other business money in that 1) government only pays you to do things it would like you to do, not what you would like to do and 2) those that got, get.  By that I mean that the money is not to start a home building business.  The firms that they are looking for are those with some of their own financial resources already, who just need incentives or some help with funding. 

From what I can find in Ohio, it's mostly financing loans and tax credits, which developers can sell for the money to develop low-income housing.  The details of programs for Ohio low-income housing developers is here.  The HDAP (housing development assistance program) includes low-interest, deferred payment loans, or SOMETIMES, outright grants.  If you are interested in finding tax credits and loans to build low-income housing, see your state's housing development agency. In some states the housing credit is not administered by the housing development agency.  This is the list of all state housing credit agencies. 

Rental Rehabilitation Program...a Program For Landlords to Improve Their Rental Properties

On opening day of the Lagrange Street Polish Festival here in Toledo, a news crew interviewed Terry Glazer, CEO of United North, the community development corporation on the north end.  He ran down a little list of the stuff they do for businesses and homeowners in their service area.  Even I was surprised that one of them was free paint for homeowners and business owners (you supply the muscle.  For the elderly and disabled, there may be volunteers or other community groups to help you.)  They also, sometimes, can supply live plants to help your property in the United North service area look prettier. 

But amid the programs for homeowners, there was this: a rental rehab program for flats, duplexes and single family homes where the owner is in residence.  Up to $30,000 is available per building for such things as getting taxes current, roofing, furnaces, exterior paint, etc.  in the area bounded by Cherry, Bancroft, Lagrange and Delaware.  But if you are a landlord living elsewhere, there may be programs for you.

For instance, the Michigan State Housing Development Authority has a rental rehabilitation program for investment property owners in the downtown area of Michigan cities.  This won't pick up the whole tab--property owners must shoulder at least 25% of the costs.  Within Michigan, many cities have applied for this money for their own rental rehab programs.  In Grand Rapids, the program offers a rebate of 50% on improvements done within the guidelines. 

In looking for such programs, try your state's housing authority.  Also try your city's neighborhood or housing department.  You can also try community development corporations, the nonprofits created to improve the economic development of neighborhoods, cities or counties within their boundaries.  Contact your city's neighborhood or housing department, or google "community development corporations" and the name of your city or state.  I wish I had something better to tell you, but there is no nationwide director for them.  As with any other financial assistance program, whether funds exist for you depends on their current availability, in that tiny space between when they received a grant from the federal government, and when the last of it has been loaned. 

More Housing Assistance for Veterans

This weekend, I learned of two more programs to help veterans get housing.  One is in northwest Ohio, and involves the joint efforts of Jaftak Realty and Toledo Area Ministries.  Jaftak has donated mobile homes for veterans who are financially unable to buy their own housing.  The requirements are: veteran status, clean criminal record, at least 18 years of age, with a monthly income of at least $1,000 a month.  They are down to the last 10 homes or so, and are looking for veterans to which they can donate the homes.  Call toll-free 877-850-2143 for more information.

I've also learned about the charity Homes for Our Troops, whose mission is to provide free adaptive housing to the most seriously wounded of the troops that have received their wounds in wartime after 9/11/01.  We've already written about the adaptive housing grants available to disabled veterans.  If you can qualify for that, Homes for Our Troops will pay the rest of the cost, so that honorably discharged veterans can get the home free.  See this site to see if you are qualified. If so, you can fill out an online application.  If you need more help or information, call or email Laura Butler at  vetinfo@homesforourtroops.org or 508-823-3300. 

Help in Ohio For Homeowners Behind in Their Property Taxes

Like I wrote about a week ago, some stuff just falls in my lap.  As I was opening my property tax bill yesterday, piece of paper from Toledo's Fair Housing Center fell out. It said that starting January 1, 2012, people who are behind in their property taxes may be eligible for help through Ohio's Restoring Stability program.  ***Notice*** The aid has changed in 2013.  Now, you must have an open mortgage--not own your house free and clear--to be eligible for help.

That's right.  The nationwide program is designed to help stabilize the value of neighborhoods around the country, and in the state of Ohio, this is interpreted to mean helping out homeowners who are in danger of losing their houses because of missed property taxes, as well as missed mortgage payments.  The help comes in the form of a a zero-interest, deferred payment loan that will be forgiven over five years, as long as you do not refinance or sell your home.  That means if you hang onto the home for five years, you will not have to repay it. If you do sell or refinance within five years, you will need to repay the loan from the net proceeds of the sale. 

If you are in the Toledo area, call the Toledo Fair Housing Center at 419-243-6163.  For more information on the program, see the webpage on the Restoring Stability program and find out how it can help you.  If you live in the rest of Ohio, call 888-404-4674 to find a counselor near you who can tell you if you qualify for any home-saving programs.

As Many Details as Possible About the New Housing Refinance Plan

The newest changes to HARP (Home Affordable Refinance Program) have been announced with much fanfare, and here's the best I source I could find on the latest refinance scheme.  The part that caught everybody's eye was that 1) homes could be "underwater" (with a mortgage bigger than their current worth.  In this case, up to 125% of the loan to value ratio.) and eligible and 2) some of the fees have been cut out.  The fees in question are risk-based fees for borrowers who are refinancing into a shorter length of mortgage, and the need for new property apraisal in cases where there is a reliable automated valuation model.  Also, the length of the program itself is extended till the end of December, 2013 for loans sold before May 31, 2009.

Who is eligible?  For one thing, your loan has to be guaranteed by Freddie Mac or Fannie Mae.  If you're not sure, there's an easy way to find out: you can look up your home by address to see if Fannie guaranteed the loan, or Freddie.  You also need to be current on your payments: no late payments in the last 6 months, and no more than 1 in the last year. 

Ah, but here's the rub:
"Since industry participation in HARP is not mandatory, implementation schedules will vary as individual lenders, mortgage insurers and other market participants modify their processes. "
So, you're still dealing with the willingness of your lender to modify the loan. 

So, contact your lender to see if they can work with you, but if you are in danger of foreclosure, please contact a HUD-approved counselor in your area to get rippoff-free advice on how to hang onto your house.  These counselors are not with HUD, but nonprofits that know the housing and foreclosure field.  And do it sooner, rather than later.

Financial Help for Disabled Veterans Who Need Home Care

I’ve written about financial help for home health care for the aged or disabled kids.   Various programs exist specifically to aid disabled veterans.  There is funding to help disabled veterans purchase an accessible home, or modify a house that they already own.  There is also financial help for veterans and their surviving spouses who are disabled enough to need help with their daily living and self-care, too.  The Aid and Attendance and Homebound Pension are supplements to other pensions to help with the expenses of self-care or nursing home or assisted living, and a veteran must be qualified for another military pension to be eligible.

To qualify, a veteran must have served 90 days, at least one day during a period of war, and for veterans who have joined after September, 1980, must have 24 continuous months of service.  Discharge must be under other than dishonorable conditions.  Income limits for veterans applying for either of the pensions is $19,736, $23,396 if the veteran has a dependent, and $2020 for each additional dependent.  For surviving spouses, the limit is $12,681--$15,128 if there is a dependent child, and $2020 for each additional dependent child. 

Aid and Attendance and Homebound pensions are two separate programs, with different qualifications.  For the Homebound pension, a veteran must be 100% disabled with one condition, and confined to their home, or 100% disabled with one condition, and at least 60% disabled with another.  For the Aid and Attendance pension, the veteran requires requires the aid of another person in order to perform personal functions required in everyday living, or is bedridden, or the veteran is a patient in a nursing home due to mental or physical incapacity, or is blind, or so.

See this website for more information, and apply online.

Finding Home Modification Money for the Disabled

A big help to people with mobility disabilities (the ability to walk or climb stairs, for instance), is financial help to make their homes more accessible. These can come in the form of grants or low-interest loans to build ramps or other modifications that can help them live in their own homes longer, or provide a friendly, supportive environment. Here’s some places where you can look for help:

Go to the National Directory of Home Modification Resources. It lists departments of aging and also departments of home finance (state housing authorities). These are useful if 1) you are old enough to qualify for the aid and 2) if your state housing authority has a program to finance home modification. However, if you aren’t, or they don’t, click on the link for Centers for Independent Living. This is a listing of agencies that specialize in things like home modifications, and are often on the money. There are usually income restrictions, but these aren’t usually too stringent. Of course, their ability to help you depends on whether they have enough money in their budget. One such place, for instance, is the Ability Center of northwest Ohio, which has a ramp and home modification program for the northwest Ohio region.

If you are elderly, the Eldercare Locator is useful, too. It offers different options for types of help. Pick the program called “home repair and modification.”

Finally, for people in 27 states, there is the nonprofit Accessible Space, Inc., which has over 100 accessible, affordable buildings where the disabled can live cooperatively. See their directory for buildings and other supportive services, where they are available.

New Money to Prevent Foreclosures

Fresh money is being pouring into the fight against foreclosure in 17 states. The Hardest Hit Fund is being strengthened in the ten states that originally got two rounds of cash—Arizona, California, Florida, Michigan, Nevada, North and South Carolina, Ohio, Oregon, and Rhode Island—and seven new states: Alabama, Illinois, Kentucky, Mississippi, New Jersey and the District of Columbia. These are all areas that have experienced unemployment rates higher than the national average. In total, $3 billion will go towards helping out homeowners whose ability to pay their mortgages was hit by an event such as the loss of a job. Homeowners may be eligible for up to $50,000 in interest-free loans to cover mortgage interest and principle, mortgage insurance, hazard insurance, and taxes until they are employed once again and can resume their home payments.
Other states with unemployment higher than the national average may apply for housing funds, too. Right now, each state is responsible through their state housing agency for their own particular guidelines. If you are a resident of one of these states, contact your housing authority (links above) to see when the rollout will be for your state. For instance, Ohio’s is September 27th. Remember that while the general purpose is the same, each state will have its own rollout date AND eligibility rules. Finally, other states may apply for money, too, so if you are in a high-employment state or locality, check your housing authority or foreclosure resources in your state.

***Update: for states not covered by this, a new program has emerged in 2011. 

Finding Low-Income Housing, All Over the U.S.

Government subsidized housing--and the local people who run it--are easy to find in the age of the internet. Economic conditions are forcing some people to contemplate a move to another part of the country, but doing research ahead of time is helpful.

To find subsidized housing, use the HUD page for that purpose, and follow its steps. First, choose the state you need information about, then select a city, county, or zip code. If you want, you can then choose either the name of the property (if you know it), or the type of subsidized apartment (disabled, elderly, family), and the number of bedrooms. Click the "next" button, and get a listing of apartments that fit the criteria you put in, along with contact information and addresses.

But it's not the whole story. There may be a huge waiting list of people for the apartment, or you might not be qualified. To further your research, use another HUD site to track down the local public housing authority and inquire about their qualifications and the availability of housing before you make a move.