Iowa

Rural Housing Repair and Rehabilitation Loans are funded directly by the Government. This program is commonly referred to as the Section 504 Program. These funds are available to very low-income residents living in non-metropolitan areas. The objective of the USDA Rural Development 504 Program is to help very low income owners of modest single family homes repair those homes. Loan funds are available to improve or modernize a home, make it safer or more sanitary, or remove health and safety hazards. Following are eligibility requirements:

• Interest rate is fixed at 1% for life of loan.
  
• Loan may be paid back over a period not to exceed 20 years.
  
• Minimal or no application and closing costs.
  
• Grants may be available to persons who are at least 62 years of age and cannot afford a loan.
  

• Household adjusted income cannot exceed 50% of median household adjusted income of the county.
  Additional information and income limits for your county may be found at www.rurdev.usda.gov.
  
• Applicant must be a US citizen or a noncitizen who qualifies as a legal alien as defined by USDA regulation.
  
• Applicant must use home to be repaired as their residence.
  
• Applicant must have legal capacity to incur a loan obligation.
  
• Applicant must have a good credit history (for low interest loan).
  
• Applicants must have repayment ability for the loan requested.
  
• Applicant must be unable to obtain financing from conventional lenders (bank, mortgage company, etc.) or from their own resources.
  
• Home must be located in a non-metropolitan area. Non-metropolitan area includes rural areas and communities of less than 20,000 persons.
  

For more information regarding the above program, please contact the USDA Rural Development Office serving the county in which you plan to reside. To find the local office serving your county, go to Iowa Office Locations..

Please send any comments or suggestions to:
keith.bastow@ia.usda.gov
Iowa Rural Development
Revised on: June 21, 2004