Home Repair Loans and Grants (Section 504 Home Repair Program)

How it works

USDA Rural Development’s Section 504 Home Repair Program helps homeowners repair, improve, or modernize their homes and remove health and safety hazards. The program is aimed at very-low-income homeowners in eligible rural areas.

The assistance comes in two forms:

• A loan for eligible homeowners
• A grant for homeowners age 62 or older who cannot repay a loan

What the money covers

The official USDA materials describe the program as supporting repairs, improvements, modernization, and the removal of health and safety hazards. USDA’s program materials also describe it as helping with essential repairs after disasters.

Amounts and matching

• Loans: up to $40,000
• Grants: up to $10,000
• Loans and grants are subject to lifetime limits, and the combined total cannot exceed the program’s cap.

How to apply

Applicants generally work through their local USDA Rural Development office. USDA provides a prequalification and intake process, including a 504 Automated Worksheet and intake forms to help determine what type of assistance a homeowner may receive.

Timing and deadlines

USDA’s federal funding opportunities page shows the program as open, and the agency says applications are accepted on an ongoing basis. Homeowners should still confirm local office procedures before applying.