USDA RURAL DEVELOPMENT OFFERS UNIQUE PROGRAM
FOR HOME REPAIR AND REHABILITATION

 Section 504 Program May Help Save Money and Help Michiganders Stay Warm

USDA Rural Development’s Section 504 Loan Program helps homeowners remove health and safety hazards and improve and modernize their homes. Uses of the loan include updating an inefficient heating system or purchasing a new central heating system, replacing or adding insulation, and replacing broken or drafty doors and windows, which can help Michiganders save money and stay warm.  With a new emphasis on alternative energy sources, we can also finance geothermal, solar, wind, wood and external woodstoves to make homes more energy efficient. 

As heating costs continue to rise, many people are looking for cost-effective ways to stay warm. The 504 Loan is an affordable solution, with interest rates at one percent with terms up to 20 years for qualified homeowners. At these terms, a $5,000 loan would result in a $23 per month payment.  A $20,000 loan would result in a $92 per month payment plus escrow for taxes and insurance. Loans under $7,500 would not require placing a mortgage on the property. 

Other uses of the 504 Loan include repairing or installing a well and/or septic system, replacing or repairing a roof, updating the electrical system, repairing the foundation, replacing siding, making the home handicap accessible, and multiple other repairs.

“Many people in Michigan are facing the prospect of bearing the cold winter with inadequate heating systems,” said Rural Development Area Director Shelly Fuller.  “Rural Development’s 504 Loan may help them finance essential repairs and upgrades that will keep them warm and help cut heating costs.”

To qualify for a 504 Loan through USDA Rural Development, applicants must meet eligibility requirements. As an example, the income limits for Alcona, Antrim, Alpena, Benzie, Crawford, Kalkaska, Lake, Manistee, Mason, Missaukee, Montmorency, Oscoda, Osceola and Wexford Counties are as follows: One person: $18,450; two people: $21,100; three people: $23,7 00; four people: $26,350; five people: $28,450; six people: $30,550; and seven people: $32,650. Charlevoix, Grand Traverse, Leelanau and Otsego counties allow for slightly higher income limits.  This is a statewide program, and a complete list of income limits can be found on our website at http://www.rurdev.usda.gov/mi/. 

For more information on this program, call 1-800-944-8119 and ask to speak to either Dave Greenwood or Val Stewart.

USDA Rural Development’s mission is to increase economic opportunity and improve the quality of life for rural residents.

“There’s a lot to what Rural Development can offer through a variety of loan and grant programs to help rural communities,” Fuller said.  “Many people don’t realize USDA Rural Development helps to create jobs, promote affordable housing, encourage small businesses, improve schools, libraries, police and fire departments, and improve community infrastructure.”  Further information on rural programs is available at a local USDA Rural Development office or by visiting USDA’s web site at www.rurdev.usda.gov/mi.

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