To give very-low income rural homeowners an opportunity to make essential repairs to their homes to make them safe and to remove health hazards to the family or the community. Eligible communities are those with less than 20,000 population.

Direct Loans:

• Interest rate: 1%
• Loan term: 20 years
• Maximum loan assistance: $20,000

Project Grants:

• Maximum grant assistance: $7,500

For LOANS, applicants must:

• own and occupy a home in a rural area without sufficient income to qualify for a Section 502

loan

• have an income which does not exceed very-low income limits (income limits vary by county).
• have income to repay the loan
• be a U.S. citizen

For GRANTS, applicants must also:

• be 62 or older
• be unable to repay a loan

To repair or improve dwellings, including repairs to the foundation, roof, furnace, or basic structure as well as water and waste disposal systems, and weatherization.

Applicants must file appropriate forms at the local Rural Development office serving the county where the dwelling is located. This assistance is available throughout the year by means of an established allocation system. Funds are released to borrowers/grantees as a lump sum payment for completed repairs.