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USDA Section 504 Home Repair Loans and Grants

By CalculateBenefits Editorial Team · Mark Phaneuf, Publisher
AI-assisted source check: November 10, 2026. What these dates mean.

USDA Section 504 may help a low-income homeowner fix a home in an eligible rural area. It offers repair loans at 1% interest. It also offers grants to some owners age 62 or older with very low income.

You apply through your local USDA Rural Development office. USDA takes forms all year. Wait times depend on the funds in your area.

What repairs can Section 504 cover?

A loan may pay to repair, improve, or update a home. It may also make a home safer. A grant is more narrow. It must remove a health or safety danger, or make the home easier to use for someone with a disability.

Work may include:

• Fixing a bad roof or unsafe floor
• Fixing heat, power, water, or septic systems
• Removing a fire or health risk
• Adding a ramp or a wider door for a family member with a disability
• Safety fixes to a mobile home you own on land you own, if it is on a permanent base or will be put on one

The money cannot build a new home. It also cannot pay a for-profit firm to fill out your forms.

USDA must approve the work. Do not hire a worker or start the job before your USDA contact says it is allowed.

Who may get a loan?

You must own and live in the home. The home must be in an eligible rural area. USDA's program page says your household income must be at or below its low-income limit for your county.

You must also be unable to get affordable credit somewhere else. USDA will check that you can repay the loan. It looks at your income, bills, and credit.

Check your address on USDA's eligibility site. Your USDA office can tell you the income limit for your county and family size. Our housing help hub also links to other home and rent programs.

Who may get a grant?

The grant path has more rules. You must be age 62 or older. Your income must be at or below USDA's very-low-income limit for your county. USDA may offer a grant, a loan, or both.

Grant money must remove a health or safety danger. It may also make the home easier to use for someone with a disability. One home can get no more than $10,000 in grants in total.

A grant must be paid back if you sell the home in less than 3 years. Ask your USDA contact how that works before you sign.

How much help is offered?

The loan can be up to $40,000. The rate is fixed at 1%. The loan lasts 20 years.

The grant can be up to $10,000. A loan and a grant together can total up to $50,000.

These are top limits, not promises. A loan cannot be more than the repairs cost. USDA decides the amount based on the home, the repair, your budget, and funds.

Old posts may list a larger grant for disaster areas. USDA's program page no longer lists one. But when funds are short, USDA serves urgent safety needs first. That includes unsafe water, a failed septic system, no heat, or harm from a natural disaster.

What should you gather?

• The full application form, signed and dated
• Photo ID that also shows your age
• Proof of your full Social Security number, such as a pay stub or tax return
• Pay stubs from the last 4 weeks
• Recent benefit letters, such as Social Security
• Your last 2 tax returns, or a note if you do not file
• Your 2 latest bank statements
• Your deed and your latest property tax bill
• Repair quotes that list the work, parts, and labor
• Photos of the repair, plus the front and back of the home

If something is missing, USDA will ask for it. USDA's checklist gives you 15 days to send it, or 30 days for a repair quote. If you miss that, USDA counts the form as withdrawn.

Do not email private records to a random address. Get the office address from USDA's site.

How do you apply?

1. Open the official Section 504 page.
2. Check that your address is in an eligible rural area.
3. Call the USDA Rural Development office for your state.
4. Ask for the application packet. You may fill out a short intake form first. It gives a rough idea if you may be eligible.
5. Send the full packet and keep a copy.
6. Wait for written approval before work starts.

USDA staff are told to decide within 30 days of getting a full packet. If funds are short, you may get a letter that puts you on a wait list.

How do you avoid delays and scams?

Use the state office number on USDA.gov. A private firm cannot promise approval or move your form to the front.

Tell USDA if the repair is an urgent safety risk. Reply fast if the office asks for a missing item. Keep all bids, letters, and receipts in one folder.

Ask the office about any costs before you sign. A loan may have some costs, such as an appraisal fee. Do not sign a repair deal that says USDA approved the job unless USDA told you that in writing.

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