Seniors Are Able To Revamp Aging Homes Thanks To Interest-Free Federal Loans

NEW YORK (CBSNewYork) -- Many seniors are being offered interest-free loans to fix up their aging homes, and these loans don't have to be paid back until the homes are sold or transferred.

Hempstead town officials celebrated the completed make-over of Tom and Joyce Fox's nearly century-old home, CBS2's Cindy Hsu reported.

"The house was built in 1926 and it was the original cedar shingles there were on the house with holes on them all over. Now, it's beautiful, looks like a brand new home!" Joyce Fox told CBS2.

An old photo shows the faded shingles before the repairs, but now there is new siding, new gutters, and downstairs, a new furnace is converted from heating oil to natural gas. The renovation was done with an $18,000 federal loan the Foxs say they have no immediate plans to pay back.

"It doesn't have to be repaid until the house is resole or until we die," Thomas Fox said.

"In many respects, it is a pot of virtually free money that is out there for seniors to make repairs on their homes," Anthony Santino, supervisor for the town of Hempstead, said.

Santino said the town has received a $700,000 grant from a little known federal program aimed at keeping seniors on fixed incomes from selling their homes and moving away.

The interest-free loans must be repaid if the senior sells, or by whoever inherits the home. Neighbors are also thrilled by the home's new look, saying it's  a good deal for the community as well.

"Of course, the house is more sellable now and everything and my property value goes up, too!" neighbor Charles Irwin said.

Town officials said they have enough federal money to grant interest-free loans to as many as 50 seniors. Meanwhile, the Foxs said their home has become quite popular.

"Our friends and family that come over for barbeques and everything, they often pass right by the house because they don't recognize it," Joyce said.

Eligible homeowners can apply to Hempstead for the loans, money the Foxs expect will be quickly gobbled up.

Homeowners must be at least 62. The loans are limited to seniors making less than $61,000 a year. But seniors with large families living inside could make as much as $115,000 and still be eligible.