USDA Rural Housing Repair Loans and Grants (Section 504)

About This Program

The USDA Section 504 Home Repair program helps very low-income rural homeowners fix dangerous or inadequate conditions in their homes. Loans up to $40,000 at 1% interest over 20 years are available to homeowners of any age for repairs, improvements, or modernization. Grants up to $10,000 are available to homeowners age 62 and older who cannot afford to repay a loan; the grant must be used to remove a health or safety hazard rather than for general improvements. Eligible repair purposes are broad: heating and cooling systems, roofs, plumbing, electrical systems, accessibility modifications (ramps, grab bars, widened doorways), weatherization, and other repairs needed to make the home safe and livable. The program prioritizes removing health and safety hazards — leaking roofs, faulty wiring, heating system failures, and lead paint abatement are common funded repairs. To qualify, you must own and occupy the property, the property must be in an eligible rural area (check the USDA eligibility map at eligibility.rd.usda.gov), and your household income must be at or below 50% of area median income. Grants additionally require the homeowner to be 62 or older and unable to repay a loan. The maximum combined loan and grant is $50,000. Applications are submitted to your local USDA Rural Development office. Processing times vary — the program is popular and funds can be limited, so applying as early as possible is advisable.

Eligibility Requirements

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