• Federal grants may be available for home improvement projects.home sweet home image by David Dorner from Fotolia.com
  
  Homeowners interested in making improvements on their property may be eligible for federal grants, especially those living in a rural setting. There are also grant funds available for home-buyers and homeowners in danger of foreclosure.
  
  

Water and Sewer

• Rural homeowners in Arizona, California, New Mexico or Texas wishing to upgrade water services may be eligible for an Individual Water and Waste Water Grant. This grant will cover projects connecting the residence to water utility lines and the installation of plumbing, such as sinks, bathtubs or showers, toilets, a water heater, outside spigots or even a bathroom.
  
  Homeowners must occupy and show ownership of the building, demonstrate a family income lower than the federal poverty income guidelines set by the Department of Health and Human Services and must not be delinquent on federal taxes.
  
  The maximum grant for water service is $3,500 and $4,000 for sewer service, including the addition of a bathroom.
  
  Contact the Rural Development Service in your area for details on applying for this grant.
  
  

Repair and Rehabilitation

• Lower-income homeowners over the age of 62 may be eligible for Rural Repair and Rehabilitation grants to make repairs or improvements on their property that make the home safer and more sanitary and remove health or safety hazards.
  
  This can include improvements or additions of sewer and water systems or the removal of toxic materials in the home. All safety and health standards need not be removed, but new work must meet current health and safety guidelines.
  
  Homeowners must be unable to get affordable credit to make the repairs or improvements and have an income below 50 percent of the median income in their community.
  
  Grants are awarded for as much as $7,500. Loans are also available for up to $20,000 at a one percent interest rate and can be combined with the grant for a total award of $27,500.
  
  Contact the Rural Development Service in your area for details on applying for this grant.
  
  

Foreclosure Help

• Homeowners in danger of foreclosure may benefit from government-funded counseling to help them negotiate with lenders to stay in their homes through the Department of Housing and Urban Development's (HUD) Neighborhood Stabilization Program. The program directs grant funds to states and local governments with high foreclosure rates and falling home values.
  
  Low and middle-income home buyers may also find down payment and closure cost assistance through this federal grant program.
  
  To find out if your community qualifies for the Neighborhood Stabilization Program grant, contact your local HUD office (see References 3).