If you're a low-income homeowner facing emergency repairs, the USDA's Section 504 program may be able to help. With loans up to $20,000 and grants up to $7,500, this program can provide critical funding for necessary repairs. Eligibility is based on income and need, and applicants must meet specific requirements to qualify.
The USDA Section 504 program provides loans and grants to low-income homeowners to repair, improve, or modernize their homes. To be eligible, applicants must have a household income below 50% of the area median income, and the home must be in a rural area as defined by the USDA.
Grants are available to homeowners who are 62 or older and unable to repay a loan, while loans are available to homeowners who can repay the loan. The interest rate on Section 504 loans is fixed at 1%, and the loan term is 20 years.
Do not apply for a Section 504 loan or grant without first reviewing the eligibility requirements and application process, as incomplete or inaccurate applications may be denied.
USDA Section 504 loan and grant applicants must have a household income below 50% of the area median income. For example, in a area with a median income of $60,000, the maximum household income to qualify for a Section 504 loan or grant would be $30,000.
The home must be located in a rural area as defined by the USDA, and must be the applicant's primary residence.
Review the eligibility requirements and ensure you meet the income and property requirements.
Collect all required documents, including proof of income, identification, and property ownership.
Section 504 loans have a fixed interest rate of 1% and a loan term of 20 years. The maximum loan amount is $20,000.
Grants are available up to $7,500 and do not need to be repaid.
If you're a low-income homeowner in need of emergency repairs, apply for a USDA Section 504 loan or grant today. Contact your local USDA office to begin the application process.
Open Deal Calculator No signup required to read this guide. See all HomeLeafs guides →The maximum loan amount for a Section 504 loan is $20,000. Grants are available up to $7,500.
No, Section 504 loans and grants can only be used for necessary repairs, such as repairing a roof or replacing a furnace.
The application process typically takes several weeks to several months, depending on the complexity of the application and the workload of the local USDA office.
Yes, applicants who are denied a Section 504 loan or grant can appeal the decision through the USDA's appeals process.