USDA Section 504 Home Repair Loans and Grants

Last updated: October 22, 2026

Its full name is the Single Family Housing Repair Loans and Grants program. Loans must be paid back. Grants have no monthly payment. You must repay the full grant if you sell within three years.

First, check your address and call your local USDA office. Ask whether it has funds, what work may count, and how to get its current application packet. If your area is not rural, look at our rural home repair guide and local programs instead.

USDA Section 504 limits and costs

USDA confirms these amounts on its official Section 504 page. They are caps, not set awards. Staff review your repair cost, income, savings, property, and ability to repay before offering any funds.

What the loan costs each month

A Section 504 loan is debt, not a grant. At 1% interest over 20 years, a $10,000 loan has a payment of about $46 a month. A $20,000 loan is about $92; a $40,000 loan is about $184.

These are sample principal and interest payments. They do not include insurance, taxes, escrow, or closing charges. Ask USDA for the full cost and payment in writing. You may get a smaller loan or a shorter term.

Who gets a grant instead of a loan?

Only qualified applicants age 62 or older can get a regular Section 504 grant. The work must fix a health or safety risk. It may also make the home usable for a person with a disability. Roof leaks, unsafe heat, and access barriers may count when USDA approves the need.

The USDA repair handbook says a qualified older owner may get grant aid first. The lifetime cap still applies. If more help is needed, USDA checks if you can pay back a loan. You do not get a grant just because you are over 62.

Who qualifies for USDA repair help?

You must meet several rules at once. USDA makes the final choice. Use these points to check if an application is worth starting.

• Own and live in the home. This is not aid for a landlord, renter, or second home.
• Live in an eligible rural area. Check the home address with USDA’s rural property map. A map result alone is not approval.
• Meet the very-low-income limit. The limit depends on your area and household size.
• Need help you cannot afford elsewhere. USDA looks at your assets and access to affordable credit.
• Show repayment ability for a loan. USDA reviews your budget, debts, and credit history.
• Be at least 62 for a grant. This age rule does not apply to the loan.

How to check the income rule

There is no single national income dollar limit. Use USDA’s income limit tables, choose your state, and look for your county and household size. Find the very-low-income figure, not the limit for a different housing program.

USDA uses adjusted household income. Some allowed deductions can change the result. Ask your USDA specialist to work out your figure before ruling yourself out.

What about savings or poor credit?

The USDA handbook says non-retirement assets above $15,000 may reduce the aid request. The threshold is $20,000 for an elderly household. It counts assets you can turn into cash within 60 days, but not the value of your home. Ask how the rule applies to your money.

A loan also calls for a sound plan to repay. Late payments, unpaid federal debt, or a home at risk of foreclosure can cause problems. A grant review is not the same as a loan credit review. Tell USDA about problems early, and ask what proof it needs.

What repairs can Section 504 pay for?

The loan can pay for repairs, upkeep, or work to make a modest home safer or better. Grants have a narrower use. They must address a hazard or a disability access need. See the federal repair rules for the program’s allowed uses.

Work may include a leaking roof, unsafe wires, broken heat, or bad plumbing. Sewage issues, a failing base, or a ramp may also count. Some energy repairs, basic equipment, or modest changes to the home may also be allowed. USDA must review the exact plan.

For roof costs and other aid, see our roof repair assistance guide. A roof problem does not mean you will get a $10,000 grant. USDA must find that the work and applicant meet its rules.

Regular Section 504 funds cannot build a new home. They cannot move a manufactured home or pay most old repair debt. They also cannot fund work that leaves the home with major hazards. A modest addition may be allowed with a loan in some cases; ask before making plans.

What if you own a manufactured home?

USDA generally requires you to own both the home and the land. You must have lived there before applying. The home must have a permanent base, or the funded work must add one. Repair work must also meet the special safety rules.

If you rent the lot or have an unclear title, ask USDA before paying for plans. Our manufactured home repair guide covers other kinds of aid.

How to apply for USDA Section 504

The best first step is a local call, not an online grant search. USDA accepts Section 504 applications through the Rural Development office serving the home. The national program page says intake runs year-round, but that does not mean every office has funds ready.

The official Section 504 intake packet helps with the early check. The process may use email, mail, or a visit, based on the office. For help planning an application, use our home repair application guide.

What papers should you gather?

USDA’s Attachment 12-E checklist lists the papers it may need. Your office may ask for more based on your home and family.

• Proof that you own and live in the home, such as a deed and tax bill.
• Photo ID and proof of age if you want a grant.
• Pay stubs, benefit letters, tax forms, and bank or asset records.
• Mortgage balance, home insurance, and any tax or lien notices.
• Photos of the damage, repair estimates, and any safety notice.
• Signed USDA forms and consent papers for adults when required.

If you inherited the home but never settled title, tell the specialist now. Do not hide a co-owner, lien, or unpaid tax bill. Use our repair document checklist to keep papers in one place.

Reply to missing-paper letters before their due date. Some requests give just 15 days, while bids may have a different period. Read your own notice, not a deadline from someone else’s case. If you need time, ask USDA in writing before the due date.

What happens once you apply?

USDA checks the property, income, assets, ownership, and need for repairs. It also checks whether you can pay back a loan. Staff may visit the home, review photos, ask for more bids, or check a contractor’s papers.

Some jobs need permits, safe lead work, or a review of flood risks. USDA may inspect the work before the last payment. USDA may pay a contractor through its own process. The funds may not come to you as cash.

There is no set national wait time. An office may take more time if money is short. A home check or missing form can also slow the case. Ask for your file status and the next step rather than guessing a date.

Loan liens, insurance, and grant repayment

A 1% loan is still a debt. If you miss payments, you may face fees or debt collection. You could lose the home if the loan has a mortgage. Read the loan and closing papers before you agree.

• Mortgage or lien: USDA generally takes a mortgage when your total Section 504 loan debt is $7,500 or more.
• Title work: Full title service is needed when total Section 504 debt is over $25,000.
• Insurance: Hazard coverage is generally needed when loan debt is over $15,000. Flood coverage may apply based on the home and work.
• Property value: Secured debts generally must fit within the home’s value, with limited allowed costs.
• Grant sale rule: You sign a grant agreement. The full grant must be paid back if the home is sold within three years of signing it.

The grant sale rule is in USDA’s grant regulation. The grant itself does not have monthly payments. Still, ask about a planned move, death, title change, or sale before signing any grant or loan papers.

See our liens and payback guide to see why a lien and a grant repayment rule are different. USDA’s 20-year loan does not become free aid with time.

Can Section 504 help after a disaster?

Yes, in some cases. For certain declared disasters, USDA lists higher Section 504 limits. The grant cap is $15,000. The combined cap is $55,000.

The usual age, income, property, and repair tests still apply. Tell USDA the disaster date. Bring FEMA, insurance, and repair papers.

USDA also lists a separate Disaster Assistance Fund with grants up to $32,420 for certain eligible cases. It has different rules and may allow some costs paid before the application. Insurance and other aid cannot pay twice for the same loss.

If you are denied or your repair cannot wait

Ask USDA whether you were denied for a rule or are waiting for funds. A weak deed, missed form, debt issue, or repair outside the program can call for a different solution. Ask for the reason in writing and what you can correct.

An adverse USDA decision may have review or appeal rights. The USDA appeal instructions say an appeal normally must be filed within 30 calendar days after you get the decision. Follow your notice. A funding delay is not always an appealable denial.

While you wait, ask about the Weatherization Assistance Program for energy and related safety work. Contact your state energy office for heat aid. A HUD housing counselor can discuss mortgage risk and safer ways to pay.

For local aid, call 211. Ask about grants, volunteer repairs, or help for older adults. Use our where to start guide.

Local help may be a grant, service, deferred loan, or regular loan. Ask which type it is before you agree.

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