Aging in Place Grants

Home Repair Scams That Target Older Homeowners, and How to Stop Them

Updated October 18, 2026 · By the Aging in Place Grants research desk · How we research

The most common home repair and fake-grant scams aimed at older homeowners, the warning signs, and what to do if you are targeted.

Most contractors are honest. But home repair is also one of the most common ways scammers go after older homeowners. They know many older adults own their homes, may be home during the day, and may feel pressure to fix a problem fast.

The stakes are high. In 2024, people over 60 filed 147,127 complaints with the FBI's Internet Crime Complaint Center and reported about $4.9 billion in losses, up 43% from the year before 1. Those figures cover all online fraud, not just home repair, but they show how often older adults are targeted.

The most common home repair scams

1. The "we're working in the area" knock

Someone knocks and says they are working on a nearby house. They noticed a problem with your roof, driveway or gutters. They have leftover materials and can give you a great deal if you decide now 23. Once paid, they do a poor job, or vanish.

2. The storm chaser

After a storm, crews show up offering fast repairs or cleanup. Some ask for money before they start or ask you to sign over your insurance check 34. Some take the money and leave. Others do shoddy work at high prices 4.

3. The costly "free inspection"

A worker offers a free check of your roof, furnace or foundation. They "find" a serious problem that is small or not there at all, then push for an expensive fix right away 3.

4. The upfront payment trap

The contractor wants a large deposit, the full price up front, or cash only 23. Some ask for gift cards, wire transfers or cryptocurrency, which are hard to trace or get back 3.

5. The loan or deed trap

The contractor offers to "help" you pay by setting up a loan through a lender they know 2. Some push a home equity loan or reverse mortgage that pays them directly 4. The terms can be awful. In the worst cases, people are tricked into signing papers that put their home at risk. The FTC warns never to sign over your deed without talking to a lawyer or someone you trust 2.

6. Fake government grant calls

A caller, email or social media message says you qualify for a free government grant for home repairs. You just need to pay a "processing fee" or share your bank account number 56. This is a scam. Federal grants have no application fee, require a real application, and are never awarded by drawing or over the phone 5.

7. Impostors at the door

Some people pretend to be from the utility company or the city and say they must come in to check something. Ask for ID, then call the utility or city at the number on your bill or on its official website before you let anyone in.

Warning signs: stop if you hear these

  • "I'm working in the neighborhood and have materials left over." 2
  • "This price is only good today." 2
  • "I need the full amount up front," or "Cash only." 2
  • "You'll need to get the permits yourself." 2
  • "I know a lender who can finance this for you." 2
  • "Just sign here, we'll fill in the rest later." 2
  • "Sign your insurance check over to me." 3
  • "You've won a free government grant." 5

How to protect yourself

Before you hire

  • Don't hire from a knock on the door. Find contractors yourself 4.
  • Get recommendations from people you trust 2.
  • Check the license with your state or county, and ask for proof of insurance 2.
  • Look for complaints with your state attorney general, local consumer protection office and local home builders association. Search the company name online with words like "scam" or "complaint" 2.
  • Get at least two or three written bids. Don't just take the lowest. Ask why bids are far apart 2.

The contract

Get everything in writing. A good contract lists 2:

  • The contractor's name, address, phone and license number.
  • The work to be done and the materials.
  • Start and finish dates.
  • The payment schedule.
  • Any spoken promises.

Don't sign anything with blank spaces, anything you haven't read, or anything in a language you don't fully understand 2.

Paying

  • Never pay the full amount up front 2. Some states limit how much a contractor can ask for as a down payment 2.
  • AARP advises a deposit of no more than one-third of the estimate 3.
  • Pay by check or credit card, not cash 4.
  • Make the final payment only when the work is done and you are happy with it 2.
  • Don't accept contractor financing until you have compared it with other loans and know you can afford it 2.

Your right to cancel

The FTC's Cooling-Off Rule gives you until midnight of the third business day to cancel many sales made at your home that cost $25 or more, or $130 or more at a temporary location like a fair or hotel room 7. Saturdays count as business days; Sundays and federal holidays do not 7.

To cancel, sign and date the cancellation form and mail it, or write a letter. Use certified mail and keep a copy 7. You don't have to give a reason 7. The seller must refund your money within 10 days 7.

Know the exceptions 7: the rule does not cover repairs or maintenance you asked for (though extra items they sell you while there may be covered), or sales needed to meet a true emergency. Some states give you more rights than the federal rule.

Protecting a parent

Adult children can help a lot:

  • Agree on a rule: no work gets hired without a call to a family member first.
  • Post a "No Soliciting" sign and a note by the door: "I don't buy at the door."
  • Be the second set of eyes on any contract or bid.
  • Watch the bank account if your parent agrees, so odd payments get caught fast.
  • Know the signs of memory problems. Scammers target people who are confused or forgetful 4.

If you think you've been scammed

  1. Stop paying. Contact your bank or card company right away.
  2. Write everything down: names, dates, phone numbers, plate numbers, receipts.
  3. Try the contractor first in writing. Follow up any call with a letter by certified mail, return receipt requested 2.
  4. Report it to your state attorney general or local consumer protection office 2, and to the FTC at ReportFraud.ftc.gov or 1-877-382-4357 25.
  5. Call the police if money was taken and no work was done.
  6. Get support. AARP's Fraud Watch Network helpline is 877-908-3360 3.

Being scammed is not your fault. Reporting it helps stop the same person from hitting your neighbors.

Where to find honest help

  • Your Area Agency on Aging can point you to vetted repair programs. Call the Eldercare Locator at 1-800-677-1116.
  • Nonprofit repair programs like Rebuilding Together do free work for eligible older adults.
  • Learn how to vet pros in our guide to finding a CAPS contractor, and see real funding options in how to pay for home modifications.

Common questions

What is the most common home repair scam?

A contractor shows up uninvited, says they are working nearby or have leftover materials, points out an 'urgent' problem, and pushes you to pay up front. They then do poor work or none at all.

How much deposit should I pay a contractor?

Never pay the full amount up front. AARP advises paying no more than one-third of the estimate as a deposit, and some states set their own limits. Make the final payment only after the work is done and you are satisfied.

Can I cancel a contract I signed at my kitchen table?

Often, yes. Under the FTC's Cooling-Off Rule, you usually have until midnight of the third business day to cancel many sales made in your home, if the sale is $25 or more. Repairs you asked for and true emergencies are exceptions.

Someone called to say I qualify for a free home repair grant. Is it real?

Almost certainly not. Real government grants require an application and never charge a fee. Grants are not given by phone or by drawing. Hang up and report it to the FTC.

Where do I report a home repair scam?

Report it to your state attorney general or local consumer protection office, and to the FTC at ReportFraud.ftc.gov. If money was lost, also call your local police. AARP's Fraud Watch Network helpline is 877-908-3360.

Sources

  1. FBI IC3 Cybercrime Report 2024: key statistics and trends — CyberScoop (reporting FBI IC3 data). Checked October 18, 2026.
  2. How To Avoid a Home Improvement Scam — Federal Trade Commission. Checked October 18, 2026.
  3. 7 Signs of a Shady Contractor — AARP. Checked October 18, 2026.
  4. Storm Surges Yield Surges in Contractor Fraud — National Insurance Crime Bureau (by AARP Fraud Watch Network). Checked October 18, 2026.
  5. Grant-Related Scams — Grants.gov (U.S. Department of Health and Human Services). Checked October 18, 2026.
  6. Phony Solicitations for Grants — Minnesota Attorney General's Office. Checked October 18, 2026.
  7. Buyer's Remorse: The FTC's Cooling-Off Rule May Help — Federal Trade Commission. Checked October 18, 2026.