Older homeowners in rural areas who cannot afford to fix a leaking roof, faulty wiring or another hazard in their house can apply for a federal grant of up to $10,000 through the U.S. Department of Agriculture’s Section 504 Home Repair program, and there is no deadline: USDA accepts applications year-round.
The program, run by USDA Rural Development, offers grants to homeowners 62 and older with very low incomes to remove health and safety hazards, and low-interest loans of up to $40,000 to low- and very-low-income homeowners to repair, improve or modernize their homes. With winter heating season starting, it is one of several federal programs that can help seniors and people with disabilities make their homes safer and warmer.
What does the USDA home repair program pay for?
Grants must be used to remove health and safety hazards, according to USDA. Loans can be used more broadly, to repair, improve or modernize a home or to remove hazards. USDA describes the program’s goal as helping people stay in their own homes and keep them in good repair.
Who qualifies for a Section 504 grant or loan?
To qualify, USDA says an applicant must:
- Own the house and live in it.
- Be unable to get affordable credit elsewhere.
- Have a household income at or below the low- or very-low-income limit for their county.
- For a grant, be 62 or older and have a household income at or below the very-low-income limit for their county.
The home must also be in an eligible rural area. Applicants can enter their address on USDA’s eligibility website to check both the location and the income limit for their county. Eligibility for repair help considers the applicant’s age, household income and total debt, USDA says.
How much money can homeowners get, and what are the terms?
- Maximum grant: $10,000, which is also the lifetime limit for grants.
- Maximum loan: $40,000, at a fixed 1% interest rate, repaid over 20 years.
- Loans and grants can be combined for up to $50,000 in help.
- A grant must be repaid if the home is sold in less than three years.
- Full title service is required if the outstanding balance on Section 504 loans is more than $25,000.
How do you apply, and is there a deadline?
There is no national deadline. USDA says applications are accepted through local Rural Development offices year-round, and approval times depend on how much funding is available in each area. Individual states may have their own requirements, so USDA asks applicants to contact the office in their state.
USDA encourages, but does not require, an informal prequalification step first. Homeowners can contact their local Rural Development office and provide two forms:
- Form RD 3550-35, the Section 504 Home Repair Loan and Grant Program intake form.
- Form RD 3550-1, Authorization to Release Information.
For the full application, USDA lists Form RD 410-4 (Uniform Residential Loan Application, also available in Spanish), Form RD 3550-1, Form RD 3550-4 (Employment and Asset Certification) and the items on the program’s Attachment 12-E checklist. The forms and the state office contacts are on the program page.
What other help is available for seniors and people with disabilities?
The U.S. Department of Energy’s Weatherization Assistance Program pays for energy-saving improvements to homes. Households at or below 200% of the federal poverty guidelines, or that receive Supplemental Security Income, are eligible under DOE guidelines, and states may instead use the LIHEAP income standard of 60% of state median income. Priority goes to older adults, families with a member who has a disability, families with children and households with high energy costs. Both homeowners and renters can apply through their state weatherization administrator, and eligible households are placed on a waitlist.
Help paying heating bills is available through the Low Income Home Energy Assistance Program; HNC’s LIHEAP guide explains how seniors and people with disabilities can apply. For local home repair and modification programs, the federal Eldercare Locator can be reached at 1-800-677-1116.
Key Takeaways
- USDA Section 504 grants of up to $10,000 help very-low-income homeowners 62 and older in rural areas remove health and safety hazards.
- Loans of up to $40,000 at 1% over 20 years are available to low- and very-low-income rural homeowners; loans and grants can be combined up to $50,000.
- Applications are accepted year-round at local USDA Rural Development offices.
- Check address and income eligibility on USDA’s eligibility website before applying.
- DOE’s Weatherization Assistance Program gives priority to older adults and households with a member who has a disability.
Frequently Asked Questions
Who can get a USDA Section 504 home repair grant?
Homeowners who are 62 or older, live in the home, are in an eligible rural area, cannot get affordable credit elsewhere and have a household income at or below the very-low-income limit for their county.
How much is the USDA home repair grant?
Up to $10,000, which is also the lifetime limit. Grants must be used to remove health and safety hazards and must be repaid if the home is sold within three years.
Is there a deadline to apply for Section 504?
No. USDA accepts applications year-round through local Rural Development offices, though approval times depend on funding in each area.
Can renters get help with home repairs?
Section 504 is for homeowners. Renters can apply for the Weatherization Assistance Program, which requires the landlord’s permission before work begins.
Featured image: Volunteers replace a roof and build a porch with a wheelchair ramp on a home in Monument Valley, Utah, in 2012, in a project USDA Rural Development supported through its Housing Preservation Grant program. Illustrative photo. (U.S. Department of Agriculture, public domain, via Wikimedia Commons)
