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 provides grants to elderly very-low-income homeowners to remove health and safety hazards.
To qualify, you must:
• Be the homeowner and occupy the house
• Be unable to obtain affordable credit elsewhere
• Have a family income below 50 percent of the area median income
• For grants, be age 62 or older and not be able to repay a repair loan
What is an eligible area?
Generally, rural areas with a population less than 35,000 are eligible. Applicants may check the address of their home to determine eligibility online at https://www.rd.usda.gov/programs-services/single-family-housing-repair-loans-grants.
• Loans may be used to repair, improve, or modernize homes or to remove health and safety hazards.
• Grants must be used to remove health and safety hazards.
Maximum loan and grant amounts available:
• Maximum loan is $20,000.
• Maximum grant is $7,500.
• Loans and grants can be combined for up to $27,500 in assistance.
Terms of the loan or grant:
• Loans can be repaid over 20 years
• Loan interest rate is fixed at 1%.
• Full title service is required for loans of $7,500 or more
• Grants have a lifetime limit of $7,500.
• Grants must be repaid if the property is sold in less than 3 years
• If applicants can repay part, but not all of the costs, applicants may be offered a loan and grant combination.
To start the application process or if you have questions, contact a USDA home loan specialist in your area. Rock County is in Area 3.