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# Single Family Housing Repair Loans & Grants

**Fact Sheet

##             Overview          

**What does this program do?**Also known as the Section 504 Home Repair program, this provides loans to very-low-income homeowners to repair, improve or modernize their homes or grants to elderly very-low-income homeowners to remove health and safety hazards.

**Who may apply for this program?**To qualify, you must:
                                  - Be the homeowner  and  occupy the house
                                  - Be unable to obtain affordable credit elsewhere
                                  - Have a household income that does not exceed the  very low limit  by county
                                  - For grants, be age 62 or older

**What is an eligible rural area?**Utilizing the USDA Eligibility Site you can enter a specific address for determination or just search the map to review general eligible areas.

**How may funds be used?**
                                  - Loans may be used to repair, improve or modernize homes or remove health and safety hazards
                                  - Grants must be used to remove health and safety hazards

**How much money can I get?**
                                  - Maximum loan is $40,000
                                  - Maximum grant is $10,000
                                  - Loans and grants can be combined for up to $50,000 in assistance

**What are the terms of the loan or grant?**
                                  - Loans are termed for 20 years
                                  - Loan interest rate is fixed at 1%
                                  - Full title service is required if the total outstanding balance on Section 504 loans is greater than $25,000
                                  - Grants have a lifetime limit of $10,000
                                  - Grants must be repaid if the property is sold in less than 3 years

**Is there a deadline to apply?**
                                  - Applications for this program are accepted through your  local RD office  year round

**How long does an application take?**Approval times depend on funding availability in your area. Talk to a USDA home loan specialist in your area for help with the application

**Who can answer questions and how do I get started?**Contact a USDA home loan specialist in your area

**What governs this program?**
                                  - The Housing Act of 1949 as amended,  7 CFR Part 3550
                                  - HB-1-3550  - Direct Single Family Housing Loans and Grants Field Office Handbook

**Why does USDA Rural Development do this?**Helping people stay in their own home and keep it in good repair helps families and their communities. Homeownership helps families and individuals build savings over time. It strengthens communities and helps many kinds of businesses that support the local economy.

**NOTE:**Because citations and other information may be subject to change, please always consult the program instructions listed in the section above titled "What Governs this Program?" Applicants may also contact your local office for assistance.

##             To Apply          

NOTE: Please select your state using the "Select your location" menu above.  By doing so, any state specific forms and resources will be shown above this note.

## Applicant Resources:

Prior to applying, potential applicants are encouraged (but are not required) to go through an informal prequalification process to determine if the repair program may be a good fit for them.  To start, potential applicants can contact their local Rural Development office and provide the following documentation:
                                  - Form RD 3550-35,  Section 504 Home Repair Loan and Grant Program Intake Form
                                  - Form RD 3550-1,  Authorization to Release Information

Very-low income homeowners in rural areas interested in applying for the repair program (preferably after going through the prequalification process as described above) can contact their local Rural Development office and provide the following documentation:
                                  - Form RD 410-4,  Uniform Residential Loan Application
                                  - Form RD 3550-1,  Authorization to Release Information
                                  - Form RD 3550-4,  Employment and Asset Certification
                                  - All application items listed in  Attachment 12-E Checklist

## Borrower Resources:

                                  - Homeowners Information Guide  - English version
                                  - Homeowners Information Guide  - Spanish version

**Rural Development Staff and Application Packager Resources:**
                                  - The  504 Automated Worksheet  is a tool designed to identify what type of assistance a homeowner may receive; however, is not a final eligibility determination.  The tool can be used to package 504 loans and grants.
                                  - Repair packagers are not subject to the certified packaging process for purchase loans. Information regarding the 504 packaging process can be found in  HB-1-3550, Chapter 3, Attachment 3-A.
                                  - Repair packagers must sign a  Memorandum of Understanding  (MOU) with the  State Office .
                                  - Allowable packaging fees to any public, tribe or private nonprofit organizations may be included in repair loans and grants.
                                  - Packagers are encouraged to visit the  Direct Loan Application Packagers  page for information and resources specific to packaging Section 502 Home Purchase Program.
                                  - Eligibility for repair assistance considers the applicant's age, household income, and Total Debt (TD) ratio. To qualify for a grant, the applicant must be 62 or older.

##             Other Requirements          

Individual states may have particular requirements based on state and local regulations. Please contact the state office in the state where your project is located.

There are no other additional requirements at the national level. If there are additional state-specific requirements they will be listed above.

##             Contact          

Please select your state in the dropdown menu above to find your local contact for this program.

##             Events