RH 504 Loans and Grants

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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 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.

FY 2007 Allocation

A limited amount of FY '07 funding is still available.

During FY '06, $3,178,889 in loan and grants were approved. 470 families were assisted with these funds.

During FY '05, $3,197,795 in loan and grant funds have been provided to very low and elderly homeowners across Georgia this year. 164 loans and 320 grants were made to help repair homes.

During FY '04, $2,181,670 in loan and grants were approved. 269 families were assisted with these funds.

During FY '03, $2,060,400 in loan and grants were approved. These funds assisted more than 306 very-low income or elderly families in repairing their homes.

During FY '02, over $2,400,000 in loan and grants were approved. These funds assisted more than 200 families.

Please send any comments or suggestions to: craig.scroggs@ga.usda.gov

Last Updated : August 15, 2007