USDA Section 504 Home Repair Grant Checker
Rural homeowners 62 and older can get a grant of up to $10,000 to fix health and safety hazards, with no repayment after three years in the home. A 1% loan of up to $40,000 is open to any age.
The USDA Section 504 program gives grants of up to $10,000 to homeowners 62 or older who cannot repay a loan. The grant pays to remove health and safety hazards or add accessibility features, and it is not repaid if you stay in the home at least 3 years. The program also makes loans of up to $40,000 at 1% interest over 20 years, for eligible homeowners of any age and a wider range of repairs. For both, you have to own and live in the home, the home has to be in a USDA-eligible rural area, and household income has to be below 50% of your county's area median income. A loan and grant together can total $50,000.
Few people know about this program. It suits someone who owns a home in a rural area and cannot afford a new roof, a furnace or a wheelchair ramp. Answer the questions below to see where you are likely to stand.
Check Your Eligibility
| Grant | Loan | |
|---|---|---|
| Maximum | $10,000 (lifetime) | $40,000 |
| Age | 62 or older | Any age |
| Cost | Not repaid if you stay 3 years | 1% fixed interest, 20 years |
| Pays for | Removing health and safety hazards, accessibility changes | Repairs, improvements and modernization |
| Other condition | You cannot afford to repay a loan | You can repay it |
One application covers both. If you can repay part of the cost, USDA can combine a loan with a grant. At 1% over 20 years, a $10,000 loan costs about $46 a month.
The grant has a 3-year condition. If you sell the home within 3 years of receiving it, the grant is generally repaid from the sale proceeds. After 3 years nothing is owed.
What the grant pays for. A failing roof, unsafe wiring, no working heat, a failed septic system, and accessibility work such as ramps, grab bars and wider doorways. It does not pay for a kitchen remodel or cosmetic work. The loan covers a wider range of repairs and improvements.
Two things depend on your address. Check both with USDA's tools before you rule yourself out:
- Rural area. USDA decides this address by address. Some areas that feel suburban qualify.
- Income limit. It is 50% of your county's area median income, and it differs between counties by tens of thousands of dollars.
How to apply. Contact your local USDA Rural Development office. Expect to provide proof of ownership, income and age, and written estimates from contractors. Funding is limited each year, so apply early in the federal fiscal year, which starts October 1.
If you do not qualify, ask your Area Agency on Aging about local home repair programs and the Weatherization Assistance Program.
Frequently Asked Questions
What is the USDA Section 504 Home Repair Program?
It is a USDA Rural Development program that gives loans and grants to very low-income homeowners in eligible rural areas to repair, improve or modernize their homes, or to remove health and safety hazards. Grants of up to $10,000, not repaid if you stay 3 years or more, are for homeowners 62 or older who cannot repay a loan. Loans of up to $40,000 at 1% interest over 20 years are open to eligible homeowners of any age.
What counts as a "rural area" for this program?
USDA defines eligible rural areas by address and updates the boundaries from time to time. Some areas that feel suburban qualify. Check your address on USDA's Property Eligibility map.
What income limit applies?
The loan and the grant both require "very low income," meaning household income below 50% of the area median income for your county. The figure differs by county, so check yours in USDA's Single Family Housing Income Eligibility tool.
What repairs does the grant actually cover?
Grants are limited to removing health and safety hazards or making a home accessible for a household member with a disability. They do not cover general improvements or cosmetic work. The loan can be used for repairs, improvements and modernization more broadly.
Do I have to pay the grant back?
Not if you stay in the home at least 3 years after receiving it. If the property is sold before then, the grant is generally repaid from the sale proceeds.
Uses the current national program terms: $10,000 lifetime grant cap, $40,000 loan cap, $50,000 combined maximum, 1% loan interest over 20 years, age 62 for grants, income below 50% of area median income, and a 3-year grant recapture period. Rural-area and county income limits depend on your address and are not calculated here, so use USDA's Property Eligibility and Income Eligibility tools linked above. A bill in Congress has proposed doubling the grant and loan caps. It has not been enacted, and the current limits apply. This is a general educational starting point, not a USDA determination. Apply through your local USDA Rural Development office for a decision.