Single Family Housing Repair Loans and Grants
Description - Repair Loans
The 504 Loan program assists eligible very
low-income applicants who are owner/occupants of a modest single family home in
a rural area (20,000 or less in population) to make repairs to their dwelling. Loan funds are available to
improve or modernize a home, or remove health and safety hazards.
Description - Repair Grants
The Section 504 Grant program is available to
very low-income homeowners who are 62 years of age or older. The grant funds are
used to remove health and safety hazards or make the dwelling more accessible to
household members with disabilities. To obtain a grant, the applicant must lack
the ability to repay a Section 504 Loan.
Loan Purposes:
Repair loans can be used to improve or
modernize your house, remove health and safety hazards, or install convenience
items.
Grant Purposes:
Grant funds can only be used to remove health
or safety hazards. Grants cannot be used for cosmetic purposes, such as
carpeting, painting, air conditioning, or landscaping.
Loan Terms
The maximum loan that an individual
applicant may receive is $20,000 (at 1 percent interest rate) based on the
applicant’s repayment ability and the cost to cover eligible repairs.
Grant Terms
The maximum lifetime grant assistance that
an applicant can receive is $7,500. The grant is subject to repayment if the
property is sold within 3 years of receiving assistance.
Who Is Eligible for a Loan?
To be eligible for a loan, you must:
- Be within the very-low income limit for
the county where your home is located.
- Be the owner of a single family
dwelling.
- Be able to repay the loan.
- Be unable to borrow the money from
another lending source.
- Have a decent credit history.
Who Is Eligible for a Grant?
To be eligible for a grant, you must:
- Be within the very-low income limit for
the county where your home is located.
- Be the owner of a single family
dwelling.
- Be unable to repay any loan.
- Be at least 62 years of age.
- Have a decent credit history.
Current FY Allocation
A limited amount of FY '10 funding is available
at this time.
During FY '09, $2,544,604 in loan and grants were approved. 345
families were assisted with these funds.
During FY '08, $2,134,000 in loan and grants were approved. 312
families were assisted with these funds.
Last Updated :
May 13, 2010
