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USDA Rural Home Repair Loans and Grants

U.S. Department of Agriculture Rural Development · Federal program

Loans up to $20,000; grants up to $7,500; combined assistance up to $27,500

This federal repair program, described on a Rhode Island official fact sheet, offers rural homeowners loans up to $20,000 and grants up to $7,500 for health-and-safety repairs. It is the closest statewide homeowner repair program Rhode Island officially documents in the material reviewed.

Last verified: July 28, 2026
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Program details

How it works

The Rhode Island DEM fact sheet describes USDA Rural Housing Repair and Rehabilitation Loans (Section 504) and Grants as federally funded help for very low-income rural residents who own and occupy a dwelling in need of repairs. The source says the funds can be used to improve or modernize a home, or remove health and safety hazards, including failed septic systems.

Amounts and terms

  • Loans of up to $20,000.
  • Loan interest rate: 1%.
  • Repayment term: up to 20 years.
  • Grants of up to $7,500.
  • Loan and grant assistance can be combined for up to $27,500.
  • Grants may be recaptured if the property is sold in less than 3 years.
  • A real estate mortgage and full title services are required for loans of $7,500 or more.

What the money covers

The fact sheet says the program covers repairs and improvements that remove health and safety hazards, including failed septic systems.

Notes

Although this is a federal program, the official Rhode Island source includes it as homeowner financial assistance available in the state. The fact sheet gives the USDA Rural Development Service Center contact number for more information.

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