*Single-family Housing Home Improvement Loans (Section 502) program can help lower income rural homeowners make vital improvements to their homes. Section 502 loans are available to make substantial home repairs when other loan options are not available.
*Home Improvement & Repair Assistance. If you are already a rural homeowner and your house needs repairs, or modifications to make it accessible to a person with a disability, you may be eligible for home improvement or repair assistance.
*Home Repair Loan and Grant Programs (Section 504) for families and individuals with very low incomes, Rural Development makes loans for repairs, to improve or modernize a home, make it safer or more sanitary, or to remove health hazards. For seniors 62 and older who cannot afford a loan, grant funds are available for these repairs. The most common types of repairs financed by the Section 504 program include fixing or replacing rooms, modernizing heating and wiring systems, and making houses accessible to people with disabilities. Funds are also available to install insulation and storm windows, put in a septic system or install or repair a bathroom.
The maximum amount you can borrow under the Section 504 Home Repair Loan program is $20,000. Interest rate is 1% and is limited to very low income, rural residents whose income falls below 50% of the area's median income.
For very-low-income homeowners 62 years old and older who can't afford to borrow the full amount required to make necessary repairs, grant funds are available. Grants can be used to remove health or safety hazards or to remove dwellings to make them accessible to house-hold members with disabilities. Grants are limited to $7,500. They are often combined w/loans to increase the amount available for repairs.
*Housing Preservation Grant Program - Under this program, nonprofit organizations, public bodies and Native American tribes renovate deteriorating homes and rental properties using grants from Rural Development. Grant funds are used to repair and bring up to code properties occupied by families with low incomes. Your USDA Rural Development local office can tell you if a Housing Preservation initiative is operating in your area.
Sams Updated 03/03/2020