Home Repair Loans and
|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
- The outstanding loan amount cannot exceed
- The lifetime grant assistance may not
- 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
- 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
|Examples of payments
- $1,000 loan at 1% for 20 years - $5.00
- $5,000 loan at 1% for 20 years - $23.00
- $15,000 loan at 1% for 20 years - $69.00
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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Complaints of Discrimination should be sent to:
USDA, Director, Office of Civil Rights, Washington D.C. 20250-9410
March 18, 2011