Also known as the Section 504 Home Repair program, this provides loans to very-low-income homeowners to repair, improve or modernize their homes or grants to elderly very-low-income homeowners to remove health and safety hazards.
Who may apply for this program?
To qualify, you must:
- Be the homeowner and occupy the house
- Be unable to obtain affordable credit elsewhere
- Have a family income below 50 percent of the area median income
- For grants, be age 62 or older and not be able to repay a repair loan
What is an eligible area?
Applicants may check the address of their home to determine eligibility.
How may funds be used?
- Loans may be used to repair, improve or modernize homes or remove health and safety hazards
- Grants must be used to remove health and safety hazards
How much money can I get?
- Maximum loan is $20,000
- Maximum grant is $7,500
- Loans and grants can be combined for up to $27,500 in assistance
Note: Rural homeowners in the states of California, Hawaii, Illinois, Indiana, Iowa, Kentucky, Maine, Michigan, Mississippi, New Jersey, New Mexico, New York, North Carolina, Oregon, Pennsylvania, Puerto Rico, South Carolina, Texas, Tennessee, Virginia, Washington, and West Virginia may be eligible for higher loan or grant amounts under the Single Family Housing Section 504 Repair Pilot Program. Please contact the State Office for more details.
What are the terms of the loan or grant?
- Loans can be repaid over 20 years
- Loan interest rate is fixed at 1%
- Full title service is required for loans of $7,500 or more
- Grants have a lifetime limit of $7,500
- Grants must be repaid if the property is sold in less than 3 years
- If applicants can repay part, but not all of the costs, applicants may be offered a loan and grant combination
Is there a deadline to apply?
- Applications for this program are accepted through your local RD office year round
How long does an application take?
Approval times depend on funding availability in your area. Talk to a USDA home loan specialist in your area for help with the application
Who can answer questions and how do I get started?
Contact a USDA home loan specialist in your area
For more information visit United States Department of Agriculture Rural Development.