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Program: USDA Single Family Housing Repair Loans and Grants

Detail Verified 4/21/2021 - Last Updated 3/4/15

Program Overview

Also known as the Section 504 Home Repair program, this program offering grants and 1% fixed interest rate home repair loans to very low-income homeowners in rural areas and communities with a population of 35,000 or less. Program funds may be used to improve or modernize a home or to remove health and safety hazards for owner-occupied single-family residences.

Who is Eligible for this Program?

To qualify, you must own and occupy the property with a single family dwelling in need of repair, earn very low income, not be able to find credit elsewhere, and lack money to pay for repairs.

You must be 62 years of age or older to qualify for a grant or a combination loan and grant. Grant only applicants must be 62 years of age or older and not qualify for a loan.

These loans and grants enable very low-income rural homeowners.

Maximum loan per family $20,000. Maximum grant per family $7,500. Maximum combination loan and grant per family $27,500.

Program funds may also be used for general repairs and improvements.

HUD Median Income Limits: 50%

Is this program for first time buyers only?: No

Property Eligibility Requirements

See for eligibility.

Benefit Details

These loans and grants enable very low-income rural homeowners to remove health and safety hazards from their homes, to improve or modernize them and to make them accessible for people with disabilities.

Benefit: Rural Development can make 20-year home repair loans of up to $20,000 at a fixed rate of one percent. Grants are available for homeowners age 62 and older who cannot afford to repay a loan. These home repair grants of up to $7,500 may be used to address health and safety problems with their homes, such as a leaking roof or damaged sewer line. These grants can also help seniors make their homes more accessible, by paying for installation of ramps, hand rails and other home modifications. For projects costing more than $7,500, seniors may apply for a loan-grant combination.

Loan Term: 20 years

Homebuyer Counseling / Education Required: No

Owner Occupancy Required: Yes

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