Federal home improvement grants are limited and narrowly targeted — primarily at very-low-income elderly rural homeowners, disabled veterans, and households needing energy-efficiency upgrades. State and local programs add a layer of rehabilitation funding (usually channeled from HUD pass-through dollars) for owner-occupants in lower-income areas.
This page covers the major programs and which households actually qualify.
USDA Section 504 — the main federal home-repair grant
The most-cited federal "home improvement grant" is the USDA Section 504 Home Repair Loans and Grants program, administered by USDA Rural Development.
- Grants: Up to $10,000 lifetime to remove documented health and safety hazards.
- Loans (Section 504 Loans): Up to $40,000 at 1 % fixed interest for general home repair and modernization.
- Eligibility: Very-low-income homeowner in an eligible rural area. Grants are limited to homeowners age 62 and over who cannot repay a Section 504 loan. Loans are available to very-low-income homeowners regardless of age.
- Apply through: Your state USDA Rural Development office. See the program page.
If the home is sold within three years of receiving a Section 504 grant, USDA may recapture the funds.
VA grants for disabled veterans
Specially Adapted Housing (SAH) Grant
- Up to roughly $117,000 in 2026 (statutory annual adjustment).
- For veterans and service members with qualifying service-connected disabilities (loss of use of two or more limbs, certain severe burns, blindness with loss of a lower extremity, etc.).
- Used to buy, build, or modify a home for accessibility — including ramps, widened doorways, accessible bathrooms, and adapted kitchens.
- Apply at VA Disability Housing Grants.
Special Housing Adaptation (SHA) Grant
- Up to roughly $23,000 in 2026 (statutory annual adjustment).
- For veterans with specific qualifying conditions (blindness, loss of use of both hands, certain respiratory or burn conditions).
Temporary Residence Adaptation (TRA) Grant
- For SAH/SHA-eligible veterans living temporarily with a family member, to adapt the family member's home.
Energy efficiency and weatherization
Weatherization Assistance Program (WAP)
- DOE-funded, state-administered. Provides energy-efficiency improvements (insulation, air sealing, efficient heating equipment, weather-stripping) to low-income households at no cost.
- Average benefit is several thousand dollars in installed improvements.
- Apply through your state's WAP-administering agency (typically a community-action agency). Find your state's contact via energy.gov/scep/wap/weatherization-assistance-program.
LIHEAP weatherization component
Some Low Income Home Energy Assistance Program funds support weatherization in conjunction with WAP. Apply through your state social-services or community-action agency.
Inflation Reduction Act home-energy tax credits and rebates
The Inflation Reduction Act of 2022 created federal tax credits for clean-energy home improvements (solar, heat pumps, efficient windows, etc.) and authorized state-administered home-energy rebate programs (HEEHRA and HOMES) for low- and moderate-income households. The state-administered rebate programs vary in launch timing — check your state energy office. Tax credits are claimed on your federal return, not as grants. See energystar.gov/about/federal_tax_credits and your state energy office.
State and local rehabilitation programs
HUD HOME Investment Partnerships Program
HUD's HOME Program passes federal funds to states and local jurisdictions, which then run owner-occupied rehab programs locally. Eligibility, dollar caps, and program names vary by jurisdiction. Many programs require:
- Income at or below 80 % of area median income (lower for some programs)
- Owner-occupant of the home being rehabbed
- Home within the jurisdiction's program area
- A residency or anti-displacement covenant for several years
Contact your city, county, or state housing department to learn about local programs.
Community Development Block Grant (CDBG) housing rehabilitation
HUD's CDBG program also funds locally administered housing rehab — often layered with HOME. Same general workflow: apply through your city or county housing/community-development department.
State Housing Finance Agency (HFA) repair programs
Some state HFAs administer their own repair grants or forgivable loans, particularly for seniors, veterans, and households at risk of displacement. Find your state's HFA via ncsha.org.
What home improvement grants typically don't cover
- Cosmetic upgrades unrelated to health, safety, or accessibility.
- Improvements to rental property (most owner-occupant programs exclude landlords).
- Improvements at properties outside the program's geographic area.
- Work done before the grant is approved.
- Costs not itemized in the approved scope of work.
If you need urgent repair on a rental property, your landlord — not the federal government — is generally responsible. State and local code-enforcement offices can help if a landlord refuses to make required repairs.
How to apply
- For USDA Section 504: Contact your state USDA Rural Development office at rd.usda.gov/contact-us/state-offices.
- For VA SAH/SHA/TRA: Apply at va.gov/housing-assistance.
- For WAP: Contact your state's WAP-administering agency.
- For HOME or CDBG rehab: Contact your city or county housing department.
- For HFA repair grants: Start at your state Housing Finance Agency.
- Before any of these: meet with a HUD-approved housing counselor — free counseling helps identify which programs you actually qualify for.
There is no application fee for any legitimate federal or state home-improvement grant.
Common questions
Can I get a federal grant to remodel my kitchen? Generally no — federal home-improvement grants are restricted to health, safety, accessibility, and energy efficiency. Aesthetic remodels are not eligible.
Do I have to repay a home-improvement grant? USDA Section 504 grants are forgiven if you remain the owner-occupant for three years; sold sooner, USDA may recapture. VA SAH/SHA are not repaid. HOME/CDBG grants typically include a multi-year residency covenant; selling early may trigger recapture.
Are these grants taxable? Most federal home-improvement grants used for the qualifying repair/adaptation purpose are not taxable income to the homeowner. Consult a tax professional for your situation.
What if I rent my home? Most home-improvement grants are for owner-occupants. Renters can access weatherization in some cases with landlord cooperation. For habitability concerns, contact your state or local code-enforcement office.
Are reverse-mortgage "home improvement grants" the same thing? No. Reverse mortgages are loans against home equity, not grants. They have significant terms and tradeoffs — get free counseling from a HUD-approved counselor before signing.