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Home Repair Loans and Grants

The purpose of our Section 504 Home Repair Loan and Grant program is to provide loan and grant funds to be used to pay for needed repairs and improvements to dwellings of eligible very low income families. Grant funds, which must be used to remove health and safety hazards, may be made to persons 62 years or older who lack repayment ability for a loan amortized at one percent for 20 years for the cost of needed repairs.  A grant may be made to persons 62 years or older who lacks repayment ability for a loan amortized at 1% for 20 years for the cost of needed repairs.
  • To be eligible, you must:
  • Be a citizen or legally admitted to the United States for permanent residence.
  • Possess legal capacity to incur debt.
  • Have an acceptable credit history
  • Be unable to get credit elsewhere and not have home resources available.
  • Very-low income (50 percent of County Median Income or less).
  • Must have sufficient and dependable income for loan repayment.
  • Must own and occupy the property.

Loan and Grant uses - Repair loan and grants may be used to remove health and safety hazards such as repairing roofs, heating, electrical and plumbing systems, water and waste disposal, installing screens, windows, insulation and other steps to make the home safe. Home improvement loans may include similar purposes but may also be used to modernize and bring a home up to standards, make changes for convenience, add a room, remodeling and overall making improvements to the home. The home must be owner-occupied.

Restrictions

  • The outstanding loan amount cannot exceed $20,000.
  • The lifetime grant assistance may not exceed $7,500
  • Loan and grant funds may not be used to construct a new dwelling, repair a home that will continue to be a major hazard, move a mobile home, make off-site improvements or to refinance existing debts.
  • Grants may not be used to make changes to the dwelling for cosmetic or convenience purposes, unless directly related to removal of health and safety hazards.
Security and Terms of Loans and Grants
  • Loans of $2,500 or more will be secured by a deed of trust.
  • Loans of less than $2,500 may be secured by a note-only.
  • Grant Agreements must be signed by all co-owners. Grant Agreements must be repaid in full if property is sold within three years from the date of the grant agreement.
  • Loan terms are not to exceed 20 years at 1% interest.
Examples of payments are:
  • $1,000 loan at 1% for 20 years - $5.00 monthly payment
  • $5,000 loan at 1% for 20 years - $23.00 monthly payment
  • $15,000 loan at 1% for 20 years - $69.00 monthly payment

Home Repair Information Sheets

For more information, USDA Rural Development Specialists will be glad to discuss services available from the Agency and explain application procedures. Click here for the Rural Development Specialist closest to you.

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 Last modified: March 18, 2011