With recently increased costs for building new homes, young couples are starting to consider improving older houses.
State agencies have resources available for qualifying homeowners seeking extra finances to improve their homes.
The Minnesota Housing Finance Agency (MHFA) offers the Community Fix-up Fund specifically for making home improvements. Households can receive up to $35,000 in low-interest loans to repair or add essential features to a house.
Qualifying projects include room and garage additions, furnace or air conditioning, roof replacement and energy conservation projects such as window replacement and insulation.
Energy efficiency projects have the added advantages of increasing property values, saving on energy bills and qualifying for an income tax deduction.
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Accessibility improvement projects, including bathroom renovation and ramp installation, also qualify for a loan under the fix-up fund.
Starting the application process involves getting a contractor's bid or itemized materials estimate from a home improvement retailer.
Once homeowners obtain documentation of costs for the project, participating banks will work with the lender to complete the loan process.
Citizens National Bank, Northwoods Bank and the State Bank of Park Rapids all participate in the Fix-up Fund.
The current rate for a Fix-up Fund loan is 7.25 percent. Rates are fixed at the time of the loan. Households must earn a combined maximum income of $90,000 or less to qualify.
