Things like music and style are often described with the adjective vintage: vintage clothes, vintage rock, and vintage almost anything. Adding this modifier raises it to the place of best of a past time. When discussing vintage homes, homes that are often historical keepsakes, we look for examples that represent the best architectural and cultural homes of a period or style such as Victorian, Arts and Craft, Frank Lloyd Wright or Bauhaus. Individuals in the market to acquire such homes may be surprised to learn that many incentives exist to preserve these treasures, one of which is lower mortgage rates.

Efforts in communities and around the nation are under way to preserve our heritage through the restoration of historical homes. Federal, state, and city governments recognize the need to preserve these sites like the National Trust for Historic Preservation. Historical societies and other interested parties offer valuable services in the identification of vintage homes and the subsequent identification of such as historical sites. These same groups often pledge funds for the restoration of these properties.

Of interest to homebuyers is the number of tax incentives and mortgage rates options for purchasing historic homes. Many states offer tax incentives to buyers who purchase homes with the intent to restore and preserve. The best way to find out if your state offers such tax incentives is through the State Historic Preservation Office (SHPO) like the California Preservation Office. These SHPOs can help identify if the property listed is historic and what programs and incentives exist for that state.

From a federal level, a few options exist for the buyer. The U.S. Department of Agriculture’s lending program for rural properties offers qualified borrowers 100% financing, competitive to low interest rates, and qualified loans are not required to carry mortgage insurance. The advantage of this loan product over others is that buyers can include the cost of repairs for the historic home in the loan, and there is no maximum loan amount. Thousands of successful loans have been executed by the USDA.

Another program offered by another organization is the 203K Rehabilitation Mortgage. This mortgage is backed by that organization and is designed to support the rehabilitation, repair, and revitalization of single-family and multi-family homes. With such, vintage homebuyers can add additional funds for repairs at very lower rates. This program is great for first-time buyers hoping to get into a fixer-upper or those who may be purchasing a second home with the sole desire to restore it. Buyers should talk to their lender about applying for the 203K Rehabilitation Mortgage and the application process.