Funding Your "Forever Home" Projects
Renovating with Universal Design, focusing on aging in place elements or even adding an ADU needn’t drain savings. There are financial alternatives in the form of state and federal programs to explore.
Construction financing
Need Financing Help?
If you need help financing your next project with us please check out our new construction financing partner Hearth. Here you can get a 60-second pre-qualification that doesn't affect your credit score.
Securing financial help for your remodel
Federal, Minnesota & Local program links for funding your "Forever Home" remodel.
A mix of grants, low-interest loans, tax credits, and rebate programs can lessen the costs. Below is a concise guide to the most relevant programs for Minnesota homeowners, especially in Hennepin County cities like Minnetonka and Blaine.
What is right for you?
Federal Programs
FHA Title I Property Improvement Loans
Insured by HUD and issued through approved private lenders, these loans finance both small and large home improvements—no equity required and minimal credit thresholds. Unsecured loans (≤ $7,500) or secured up to $25,000 for single‑family homes, 20‑year term. HUDNerdWallet
HUD 203(k) Rehabilitation Mortgage
For homebuyers or owners refinancing: Rolls renovation costs (up to $35,000 for limited, no minimum for standard with ≥ $5,000 repairs) into your mortgage. Ideal when you’re already financing or refinancing your primary residence. Investopedia
USDA Section 504 Home Repair Loans & Grants
For rural homeowners (including some metro fringes)—loans up to $40,000 at 1 % interest and grants up to $10,000 for homeowners ≥ 62 years to remove health/safety hazards. Combine loan+grant for up to $50,000. Rural Development
VA Specially Adapted Housing (SAH) & Special Home Adaptation (SHA) Grants
Veterans with service‐connected disabilities can receive up to $100,896 (SAH) or $22,677 (SHA) to add ramps, widen doorways, install lifts, etc. (2025 figures). Check VA.gov for current maximums. (No citation; amounts fluctuate—confirm on VA site.)
Home Equity Conversion Mortgage (HECM)
A reverse‐mortgage option for homeowners greater than 62 allows access to home equity tax‑free to fund aging‑in‑place modifications. Requires counseling and carries fees. (General knowledge; see HUD HECM pages.)
Minnesota-State Programs
Minnesota Housing: “Improve Your Home” Loans
Low‑interest loans (through participating lenders) for home repairs, energy upgrades, accessibility modifications. Loan amounts and terms vary; some programs offer deferred payments until sale. Minnesota Housing
Aging in Place Resources & Grants
While Minnesota’s Senior LinkAge Line provides planning guidance (no direct funding), nonprofits like Habitat for Humanity South Central MN offer sliding‑scale repair/modification services to seniors. mn.gov // Minnesota's State PortalHabitat for Humanity SCMN
Weatherization Assistance Programs
Free or low‑cost energy audits and upgrades (insulation, air sealing) delivered via local Community Action Agencies—savings can be reinvested in universal‑design features. (General program; check your county agency.)
Labor begins in design and only ends with the job is complete
City of Minnetonka
Economic Development Authority (EDA) Home Improvement Loan
Through the Center for Energy & Environment (CEE), Minnetonka homeowners can borrow for remodeling and energy‑efficiency projects—loans up to available EDA funds, sub‑4 % interest. Center for Energy and Environment
Accessibility Ramp Grants
Up to $5,000 reimbursed for deconstruction/installation of accessibility ramps, railings, etc., to offset extra labor and material costs. Minnetonka MN
Energy‐Efficiency Rebates
Xcel Energy & CenterPoint offer rebates on LED lighting, insulation, efficient water heaters, heat pumps, and more—pair these with loan dollars to stretch your budget. Minnetonka MN
ADU Study & Potential Incentives
Minnetonka is currently studying detached‑ADU allowances—future fee waivers or streamlined permits may emerge. Meanwhile, watch the city’s ADU Study page for updates. Minnetonka MN
cost reducing programs
City of Blaine
Home Improvement Grants
For owner‑occupied houses ≥ 30 years old and ≤ $400 K assessed value: Front Door and Major Remodeling grants (no income limits). Covers accessibility upgrades, roof/porch repairs, and more. Blaine, MN
Low‐Interest Home Improvement Loans
Through CEE on behalf of the Blaine EDA: finance projects up to $50,000 at < 4 % interest. Ideal for universal‑design retrofits, bathroom/kitchen upgrades, or ADU build‐outs. Blaine, MN
Remodeling Advisor Visits
Free one‑time home visit by a remodeling advisor to help prioritize projects, assess bids, and plan budgets—great first step before applying for loans/grants. Center for Energy and Environment
ADU Permitting
Blaine allows one ADU per lot (up to two adults) via conditional‑use permit; no direct financial incentives yet, but check City Alerts for a Housing Action Plan that may ease fees/process. Blaine, MNA1DesignBuild
Bringing it all together
- Audit Your Needs: Use our Universal Design checklist to identify priority upgrades.
- Match Programs: Layer federal loans/grants with state and local dollars—e.g., FHA Title I loan + Minnetonka ramp grant + Xcel rebate.
- Engage Early: Schedule a free remodeling advisor visit (Blaine) or energy assessment (Minnetonka) to refine your scope.
- Apply Strategically: Start with non‑competitive, year‑round programs (FHA Title I, USDA Section 504) and then tack on local grants to fill gaps.
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