Financing Construction Costs and Home Modifications

. February 2, 2017.
MLiving-Building-Construction-Finance

Construction costs for adjustments and repairs can often cause financial tensions without careful planning and helpful resources. Adjustments and repairs often involve physical modifications for changing needs including installing walk-in bathtubs, smoothing floor surfaces or changing water faucet handles to easy-to-use fixtures and pull out shelving. Be sure when you’re making the modifications to use a licensed, bonded, and insured contractor. But first you have to plan where will the money come from? Loan? Savings? Retirement plan (e.g. 401K)? We got the facts with some insight from Area Office on Aging of Northwestern Ohio, Inc. and PNC Bank.

Gov’t Loans and Grants

Government organizations like Veterans Administration, Department of Housing and Urban Development (HUD) and the U.S. Department of Agriculture (Rural Repair and Rehabilitation) offer competitive loans. HUD provides grants for home repairs each year by giving money to states and local agencies including local Area Agencies on Aging. These agencies help senior citizens with a variety of needs including home repair, often for free. Awards depend on the applicant’s income and some are free while others are charged on a sliding scale. The Area Office on Aging of Northwestern Ohio, Inc. serves ten NW Ohio counties. “We offer several home repair programs,” says Justin Moor, vice president of communications at the agency areaofficeonaging.com 419-382-0624. “These programs are worth trying first before using savings, a 401k/retirement account or reverse mortgage/loan.” With a few special exceptions (e.g. assistive technology devices), Medicare and most other private insurance typically do not pay for the cost of home modifications. Free labor requires pay back of the materials as the personnel resources typically comes from non-profit organizations or charities like Habitat for Humanity, Rebuilding Together and NeighborWorks. Grants must be used for the modification purpose, which might require confirmation/proof, and do not need to be paid back. The Low-Income Home Energy Assistance Program (LIHEAP) is a good example of a grant that can help pay utilities when making energy saving modifications.

Commercial Lending Options

Reverse mortgages are a possibility only with residents living in the home for a number of years. See www.ncoa.org/economic-security/home-equity/reverse-mortgages/ for more information. Homeowners with equity might want a low interest Home Equity Line of Credit. “A lump sum loan is a one-time, closed-end loan that usually has a fixed interest rate while a line of credit lets you withdraw the funds any time and usually has adjustable interest rates,” says PNC Loan Officer Joshua Harrison. “It’s important to try for a loan on a nationwide, state and/or county level (visit www.usa.gov/state-tribal-governments) as well as a type that has the lowest possible interest rate for older adults.” Community Development Financial Institutions can also provide financial help. The Heritage Home Program (www.heritagehomeprogram.org/loans/loans.php) uses a partnership with KeyBank for loans. You can also contact your banker for information on applications independent special needs assistance. Whatever your choice, be sure to confirm the qualifications of any lenders with The Ohio Department of Commerce at 1-866-278-0003. Home construction or modification costs may be expensive but before you deplete your savings or take out a costly loan, consider the tips above – your home sweet home can always offer you the mobility and comfort you need.

Trending

(GRAND) FATHERS DAY

In honor of Father’s Day, M Living tracked down three local grandfathers who offer their wisdom, energy and love in one of the most joy-filled roles of their lives. Gary Scalden Dumpster diving added to Papaw’s talents Ethan Laeng, 13, has always known his Papaw was cool. He built a fort for Ethan in his

2019 Guide to Local

Special Advertising Section You’ve likely shopped at or used the services of these local businesses, but perhaps you don’t know the people involved with them. We wanted to change that. Community is about bringing people together. It’s about neighbors helping neighbors. Here are a few local businesses and organizations we want you to get to

NEW RANCH HOMES— Whitehouse Meadows Subdivision

sponsored content Whitehouse Meadows, a new, in-town subdivision, offers affordable country living. Located only a half mile from downtown Whitehouse, the subdivision includes private access to the Wabash Cannonball Hike & Bike Trail, where residents can enjoy a quick walk to town for dinner, ice cream, morning coffee and more. Residents can choose to live

2019 Road Trip Guide

Day trips — cures for a small case of wanderlust Though there are many outdoor activities to enjoy in The Glass City, nothing says summer like a road trip. We came up with a list of places that you could explore without having to plan for an overnight stay. Whether you are a beach bum,