The Section 504 Home Repair Program, also known as the USDA Single Family Housing Repair Loans and Grants program, helps very low-income homeowners maintain safe, livable homes. This program is a standalone from the USDA home loan program, and you do not need to have an existing USDA loan to use it.
Through the USDA Section 504 Home Repair Program, qualifying rural homeowners can access low-interest loans, and qualifying seniors can access grants that don’t require repayment if program conditions are met.
Whether you have a leaky roof or an elderly parent needs a safer bathroom, the USDA Section 504 Home Repair Program makes it possible to address essential repairs without taking on unsustainable debt.
You can apply for this program through your local Rural Development office.
What Kinds of Repairs Are Covered Under Section 504?
Keep in mind that the Section 504 program is designed to cover repairs that significantly impact health, safety, and daily comfort, not fund cosmetic upgrades. Eligible repairs may include fixing a leaking roof, removing a hazard that endangers your family, or adding features that help seniors move around more easily.
Section 504 Grants
As previously mentioned, grants focus on health and safety, especially for seniors who may live on fixed incomes. These funds are often used to make homes more accessible or to eliminate risks.
As such, a grant might fund a wheelchair ramp, grab bars in the bathroom, or new flooring to reduce fall hazards. For example, a senior who struggles to climb steep steps just to get inside their home.
Section 504 Loans
Loans through Section 504 can tackle a wide range of repairs meant to keep your home safe and functional. That might mean repairing a foundation, replacing a roof, upgrading a furnace, or rewiring outdated electrical systems.
Let’s take a look at what kind of repairs Section 504 program loans and grants will and will not cover:
Category | Examples of Covered Repairs | Notes |
Loans (up to $20,000 at 1% interest, repayable over 20 years) | Foundation repairs, Roof replacement, Furnace or heating system upgrades, Electrical rewiring | Helps address major structural or safety issues |
Grants (up to $7,500, for homeowners age 62+) | Wheelchair ramps Grab bars in bathrooms Non-slip flooring Repairs to eliminate hazards (unsafe steps, faulty wiring) | Must be repaid if the home is sold within 3 years |
Not Covered | Granite countertops Heated floors In-ground pool Cosmetic remodels | The program is limited to essential health and safety needs |
Pros and Cons of Section 504 Home Repair
The USDA Section 504 Home Repair Program has real strengths and benefits, but it may not fit every project. Knowing the advantages and limitations helps homeowners make an informed choice.
| Pros | Cons |
|---|---|
| Opens the door to funding when other credit is out of reach | Limited to very low-income households |
| Grants available for homeowners 62 and older | Loan and grant amounts may not cover major remodels |
| Fixed 1% loan interest with up to 20 years to repay | Home must be owner-occupied |
| Directly addresses health and safety issues | Property must be in a USDA-eligible rural area |
| Loans and grants can be combined for larger projects | Grants must be repaid if the homeowner sells the property within three years. |
In short, the program best suits homeowners who face urgent safety concerns or essential repairs and cannot find reasonable financing elsewhere. For those situations, the pros often outweigh the cons, and the Section 504 option becomes a practical path to essential repairs.
Who Is Eligible for the Section 504 Program?
Eligibility is straightforward, though some may consider the rules strict. To qualify for a loan through Section 504, homeowners must meet four main requirements.
Household income must be below 50% of the median income in your area.
You must own and occupy the home as your primary residence.
You must be unable to obtain affordable credit elsewhere.
The property must be in a USDA-eligible rural area.
To qualify for a grant through Section 504, you must meet all of the above requirements, be 62 or older, and be unable to repay a loan.
These guidelines ensure the USDA Section 504 home repair program reaches the households who need it most.
Section 504 Grant Terms & Loan Amounts
Before applying, it helps to understand exactly how much funding may be available and what the repayment guidelines look like. The Section 504 program sets clear limits for both loans and grants, and knowing these details can make it easier to plan and carry out your project.
Loan Terms
Loans can be as high as $20,000, with repayment periods of 20 years and a fixed interest rate of just 1%. That means even a major repair like replacing a roof or rewiring a house becomes manageable. Instead of putting it off and risking more damage, homeowners can address the issue and pay over time with peace of mind.
Grant Terms
Fortunately, these grants can provide up to $7,500. They are designed for seniors 62 and older who need safety improvements and cannot take on debt.
These funds are often used for urgent fixes like repairing unsafe flooring, addressing heating issues, or adding accessibility modifications, and do not have to be repaid.
Combining Loans and Grants
Some homeowners qualify for both, which can provide up to $27,500 in total funding. For example, a senior could use a grant to add a ramp and safer bathroom features, while also using a loan to cover roof replacement. This option helps address multiple needs at once without stretching finances too thin.
The Fine Print to Keep in Mind
If a grant recipient sells their home within three years, the grant must be repaid. Loans follow USDA repayment guidelines and must be used for eligible repairs. Keeping this in mind helps homeowners avoid surprises and plan ahead.
How to Apply For the Section 504 Home Repair Program
The Section 504 Home Repair Program application is accepted year-round, but because funding is limited, applying early improves your chances.
If you are interested in applying, here are the steps:
Contact Your Local USDA Rural Development Office: A representative can walk you through the program and check eligibility. Find local offices in your state here.
Gather Documentation: Collect proof of income and evidence of homeownership. You also must show that you can’t obtain affordable financing from another lender. This could be a denial letter from a bank or credit union or proof that the only loans available to you come with high interest rates or terms you can’t afford.
Check Location Eligibility: Use an online USDA property eligibility tool to confirm your home is in a qualifying rural area.
Complete and Submit Your Application: Turn in your Section 504 Home Repair Program application through your local Rural Development office. Some offices accept digital submissions for convenience.
Respond to Follow Ups: The office may request contractor estimates, photos, or other documents. Quick responses keep the process moving.
With the right preparation, the Section 504 Home Repair Program application can move smoothly from start to finish. Many homeowners find the process less intimidating once they connect with their local USDA office and know what to expect.
Emily Kittle is an experienced underwriter with a strong background in risk assessment, training, and loan decision-making. She excels at solving complex mortgage challenges and guiding loans to closing using creativity and critical thinking.