Other Funding for Houses

Some programs are for updating the house, either for new infrastructure or for cosmetic updates to make the exterior prettier. This can be important in more run-down neighborhoods.

There are grants and loans for garages and insulation; these are important, not only for safety in the case of the garage, but for energy efficiency, which is another thing for which tax credits may be available. I do plan to have my new house, whenever I get it, audited for energy efficiency. Additional insulation, new windows, new doors, new hot water heaters and crazy things like caulking gaps or adding weatherstripping can help a lot. I would do it for the savings on heat bills alone, and not worry about whether you exceed your tax breaks; because face it, at some point, what with income limits for these programs, some people whose income qualifies for tax credits, will end up getting all the credit they can and having no tax liability for a given year.

I'm not linking to programs as they vary with state, county, city and neighborhood. It's important to learn about programs in your area before searching for a home as these sorts of funds may make a difference to you.