For many homeowners in rural America, maintaining their property can be financially challenging. The United States Department of Agriculture (USDA) offers a lifeline through its Single Family Housing Repair Loans & Grants, also known as the Section 504 Home Repair program. This program helps low-income families residing in rural areas to enhance their living conditions by providing affordable funding options for necessary home repairs and improvements. Here’s what you need to know about qualifying for and utilizing these financial aids.

What is the Section 504 Home Repair Program?

The Section 504 Home Repair program is designed to help low-income people own safer and more sanitary homes and to modernize rural America’s housing stock. The program provides loans to cover repair and improvement costs that will remove health and safety hazards or to modernize their homes. Grants are available for elderly low-income homeowners to remove health and safety hazards.

Eligibility Criteria

To qualify for this assistance, several criteria must be met:

  • Area: The property must be located in a rural area with a population of 35,000 or less.
  • Income: Applicants must have an income below 50% of the area median income.
  • Ownership: Applicants must be homeowners and occupy the house.
  • Age: For grants, applicants must be 62 years or older and unable to repay a repair loan.

Understanding Loans and Grants


  • Can be up to $20,000.
  • Have a fixed interest rate of 1%.
  • Can be repaid over a period of up to 20 years.
  • Can be used to make general repairs and improvements, or to remove health and safety hazards.


  • Available only to senior citizens who meet the age requirement.
  • Can be up to $10,000.
  • Must only be used to pay for repairs and improvements that remove safety hazards.
  • Require no repayment unless the home is sold within three years of receiving the grant.

How to Apply

Applicants interested in the Single Family Housing Repair Loans & Grants should contact their local USDA home loan specialist or visit the USDA’s official website for more information. The application process involves verifying income, homeowner status, and the condition of the home to ensure it meets the program’s requirements.


The USDA’s Section 504 Home Repair program offers a significant opportunity for rural homeowners struggling to make necessary improvements due to financial constraints. By providing affordable loan and grant options, the USDA helps ensure that more families can live in safe and comfortable homes. For those living in rural areas and meeting the criteria, this program could be the key to necessary home repairs and improvements.

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