Very Low Income Repair Loans and Grants
(Section 504 Program)

The purpose of this program is to assist very low income owner occupants in rural areas who do not qualify for Section 502 loans to repair or improve their dwellings in order to make such dwellings safe and sanitary and to remove hazards to the health of the occupants, their families or the community. This includes repairs to the foundation, roof or basic structure as well as water and waste disposal systems, and weatherization. View a list of New Jersey's eligible areas or determine property eligibility.

Loans bear an interest rate of one percent and must be repaid over a period of up to 20 years. Maximum loan assistance is $20,000 to any eligible person and maximum grant assistance is $7,500 to any eligible elderly person for home improvement; however, the loan/grant combination must not exceed $27,500. Loans and grants may not be made to assist in the construction of new dwellings. Eligible housing must be located in a place which is rural in character and does not exceed 10,000 population or in a place whose population exceeds 10,000, but is not in excess of 20,000, provided the place is not a Metropolitan Statistical Area (MSA) and has a serious lack of mortgage credit for low and moderate income families as determined by the Secretary of Agriculture and the Secretary of Housing and Urban Development.

To be eligible the applicant must own and occupy a home in a rural area; be without sufficient income to qualify for a Section 502 loan; have sufficient income to repay the loan; and be a citizen of the United States or reside in the United States after having been legally admitted for permanent residence. Grant recipients must be 62 years of age or older and be unable to repay the part of the assistance received as a grant.