Single Family Housing Repair Loans and Grants
What does this program do?
Also known as the Section 504 Home Repair Program, it provides loans to very-low-income homeowners to repair, improve, or modernize their homes. It also provides grants to elderly, very-low-income homeowners to remove health and safety hazards.
Who can apply?
To qualify, you must:
- Own and occupy the house.
- Be unable to obtain affordable credit elsewhere.
- Have a family income within the very-low-income limit.
- Be age 62 or older to qualify for a grant.
What is an eligible area?
Properties must be located in an eligible rural area. Visit the USDA Income and Property Eligibility website (opens in a new tab) for complete details.
How can funds be used?
- Loans can be used to repair, improve, or modernize homes, or to remove health and safety hazards.
- Grants must be used to remove health and safety hazards.
How much money can I get?
- The maximum loan is $40,000.
- The maximum grant is $10,000.
- Loans and grants can be combined for up to $50,000 in assistance.
What are the terms of the loan or grant?
- Loans are repaid over 20 years.
- The loan interest rate is fixed at 1%.
- Full title service is required for loans greater than $25,000.
- Grants have a lifetime limit of $10,000.
- Grants must be repaid if the property is sold within three years.
Is there a deadline to apply?
Applications are available year-round as long as funding is available. Applications are processed in the order they are received.
How long does an application take?
Approval times depend on funding availability in your area. Contact a USDA home loan specialist through the USDA Rural Development state office directory (opens in a new tab) for help with your application.
How do I get started?
Contact a USDA home loan specialist in your area. Contact information is available through the USDA Rural Development state office directory (opens in a new tab).
What governs this program?
The program is governed by the Housing Act of 1949, as amended, and 7 CFR, Part 3550 (opens in a new tab).
Additional guidance is available in the HB-1-3550 Direct Single Family Housing Program Field Office Handbook (opens in a new tab).
Note: Program information may change. Always consult the official program instructions or contact your local USDA Rural Development office (opens in a new tab) for help. Additional resources, forms, and program information are available on the USDA Rural Development website (opens in a new tab).
USDA is an equal opportunity provider, employer, and lender.