Rural Housing Programs
Section 504 Repair Loans and Grants

PROGRAM DESCRIPTION:  Low interest home improvement loans and grants, designed for very low income individuals (50% or less of county median income).

TYPE OF ASSISTANCE:  Loan funds can be used for making basic repairs, installing essential features, or to remove health and safety hazards.  Grant funds can only be used to remove health and safety hazards.

ELIGIBILITY REQUIREMENTS:  Must be a rural resident or living in a town of up to 10,000 population, have a reasonable credit history, own inadequate (but repairable) housing, have a very-low adjusted income, and unable to obtain credit elsewhere.  To qualify for grant funds, must be 62 years or older and be unable to repay a low interest loan.

FUND AVAILABILITY AND MAXIMUM AMOUNTS:  Funding is based upon an annual appropriation.  The maximum loan limit is $20,000.  The lifetime grant maximum is $7,500.

INTEREST RATE:  Interest rate is 1% A.P.R. on loans.

TERMS:  Up to 20 years.

COLLATERAL:  A mortgage is taken when the amount is $7,500 or more.

CREDIT REQUIREMENTS:  Reasonable credit history.

CONTACT:  For assistance, please contact the Local Office that serves the county in which you are interested.

       Please send comments or suggestions to:  beverly.helton@al.usda.gov