Money available for fixing homes

July 13, 2008

Should you inherit a house that needs more work than you can afford, here are some money-saving tips:

Loans: If you must borrow, get a fixed-rate loan, not an adjustable rate, so the amount won't fluctuate should interest rates rise. Look into rehab and refinance loans from Neighborhood Housing Services, the only non-profit mortgage lender in Illinois (nhschicago.org).

Grants: Bungalow owners should check into energy-saver grants and low-income assistance from the Historic Chicago Bungalow Association (chicagobungalow .org). Owners of Chicago greystones built between 1890 and 1930 should check into facade renovation grants from the Historic Greystone Initiative (nhschi cago.org). Redstone, brownstone and sandstone single-family homes recently have been added to the list of eligible buildings.

Taxes: Should restoration costs of a historic home in a landmark district equal one-quarter its fair-market value, you may qualify to have property taxes frozen for eight years. Get feedback before you move ahead on your plans from the Illinois Historic Preservation Agency (217-782-4836).