NOTE: California is currently participating in a pilot program that increases the program limits. Grants are available up to $10,000 (up from $7,500) and loans are available up to $40,000 (up from $20,000) with a maximum of $50,000 (up from $27,500) assistance. Contact our staff to learn more.
What does this program do?
Also known as the Section 504 Home Repair program, this provides loans to very-low-income homeowners to repair, improve or modernize their homes or grants to elderly very-low-income homeowners to remove health and safety hazards.
For existing Section 502 direct and 504 borrowers who have received a payment moratorium related to COVID-19: The American Rescue Plan (ARP) Act of 2021 appropriated additional funds for Section 502 direct and 504 loans, to remain available until September 30, 2023. The focus will be to refinance existing Section 502 direct and Section 504 borrowers who have received a payment moratorium related to COVID-19. Beginning May 17, 2021, the Agency will accept applications from existing Section 502 direct and Section 504 loan borrowers, to refinance outstanding loans which have been in an approved COVID-19 moratorium. Additional information for these borrowers, including a standardized application package, is available at https://pubmai.sc.egov.usda.gov/.
Who may apply for this program?
To qualify, you must:
- Be the homeowner and occupy the house
- Be unable to obtain affordable credit elsewhere
- Have a family income below 50 percent of the area median income
- For grants, be age 62 or older and not be able to repay a repair loan
What is an eligible area?
Applicants may check the address of their home to determine eligibility.
How may funds be used?
- Loans may be used to repair, improve or modernize homes or remove health and safety hazards
- Grants must be used to remove health and safety hazards
How much money can I get?
- Maximum loan is $20,000
- Maximum grant is $7,500
- Loans and grants can be combined for up to $27,500 in assistance
Note: Rural homeowners in the states of California, Hawaii, Illinois, Indiana, Iowa, Kentucky, Maine, Michigan, Mississippi, New Jersey, New Mexico, New York, North Carolina, Oregon, Pennsylvania, Puerto Rico, South Carolina, Texas, Tennessee, Virginia, Washington, and West Virginia may be eligible for higher loan or grant amounts under the Single Family Housing Section 504 Repair Pilot Program. Please contact the State Office for more details.
What are the terms of the loan or grant?
- Loans can be repaid over 20 years
- Loan interest rate is fixed at 1%
- Full title service is required for loans of $7,500 or more
- Grants have a lifetime limit of $7,500
- Grants must be repaid if the property is sold in less than 3 years
- If applicants can repay part, but not all of the costs, applicants may be offered a loan and grant combination
Is there a deadline to apply?
- Applications for this program are accepted through your local RD office year round
How long does an application take?
Approval times depend on funding availability in your area. Talk to a USDA home loan specialist in your area for help with the application
Who can answer questions and how do I get started?
Contact a USDA home loan specialist in your area
What governs this program?
- The Housing Act of 1949 as amended, 7 CFR Part 3550
- HB-1-3550 - Direct Single Family Housing Loans and Grants Field Office Handbook
Why does USDA Rural Development do this?
Helping people stay in their own home and keep it in good repair helps families and their communities. Homeownership helps families and individuals build savings over time. It strengthens communities and helps many kinds of businesses that support the local economy.
NOTE: Because citations and other information may be subject to change, please always consult the program instructions listed in the section above titled "What Governs this Program?" Applicants may also contact your local office for assistance.
NOTE: Please select your state using the "Select your location" menu above. By doing so, any state specific forms and resources will be shown above this note.
Applicants interested in applying for a repair loan or grant can contact their local Rural Development office and provide the following documentation:
- Form RD 410-4, Uniform Residential Loan Application
- Form RD 3550-1, Request for Information
- Form RD 3550-4, Employment and Asset Certification
- All application items listed in Attachment 12-E checklist
Rural Development Staff and Loan Application Packager Resources:
- Repair loan packagers are not subject to the certified packaging process for purchase loans. Information regarding the 504 packaging process can be found in HB-1-3550, Chapter 3, Attachment 3-A.
- Allowable packaging fees to any public, tribe or private nonprofit organizations may be included in repair loans, but not repair grants.
- The 504 Automated Worksheet is a tool designed to identify what type of assistance a homeowner may receive; however, is not a final eligibility determination. The tool can be used to package 504 loans.
- For grant eligibility you must meet the age requirement of 62 or older (additional requirements apply). Income based grant eligibility is determined by the household's adjusted annual income compared to the area median income (AMI).
- Repair assistance is determined by the households adjusted annual income and existing mortgage payments, real estate taxes, homeowner's insurance and other monthly total debts (TD). Very-low income homeowners could qualify for loans and/or grants in one of three ways:
- Adjusted annual income up to 30% of AMI or Total Debts (TD) exceeding 46% may qualify for up to a $7,500 grant for eligible purposes.
- Adjusted annual income exceeding 30% of AMI with Total Debts (TD) not exceeding 46% may qualify for both a repair loan and grant at age 62 or older.
- Adjusted annual income below 50% of AMI with Total Debts (TD) less than 46% may qualify for up to a $20,000, twenty-year, 1% interest rate loan if less than age 62.
Individual states may have particular requirements based on state and local regulations. Please contact the state office in the state where your project is located.
There are no other additional requirements at the national level. If there are additional state-specific requirements they will be listed above.
Main Phone Number: (530) 792-5800 extension 1
USDA Rural Development
Attn: Single Family Housing
430 G St, Agency 4169
Davis, CA 95616
Stephen Nnodim, Single Family Housing Program Director
Debbie Morris, SFH State Coordinator
Tamye Binning, SFH Technician
Kallii Lane, SFH Technician
Rosie Jaurige, SFH Technician
Serving Glenn, Lassen, Modoc, Plumas, Shasta, Siskiyou, Tehama, Trinity counties:
Cheri Skudlarek, Area Coordinator
Ed Amen, Area Specialist
Andrea Harbert, Area Specialist
John Strauch, Area Specialist
Serving Amador, Alpine, Butte, Calaveras, Colusa, Contra Costa, El Dorado, Mono, Nevada, Placer, Sacramento, Sierra, Solano, Sutter, Yolo and Yuba counties:
Nicole Roldan-Leben, Area Coordinator
Barinder Kaur, Area Specialist
Thomas Thompson, Area Specialist
Wanda Thompson, Area Technician
Serving Alameda, Del Norte, Humboldt, Lake, Marin, Mendocino, Monterey, Napa, San Benito, San Francisco, San Mateo, Santa Clara Santa Cruz and Sonoma counties:
Violet Gomes, Area Coordinator
Lupe Benavides, Area Specialist
Roger Gardner, Area Specialist
Serving Fresno, Madera, Mariposa, Merced, San Joaquin, Stanislaus and Tuolumne counties:
Liz Vannata, Area Coordinator
Alba Lazaro, Area Specialist
Alma Jaquez, Area Specialist
Serving Inyo, Kern, Kings, San Luis Obispo, Santa Barbara Tulare and Ventura Counties
Stacy Lopez, Area Coordinator
Rebecca Didway, Area Specialist
Armando Aparicio, Area Specialist
Arogeanae Brown, Area Specialist
Zulema Rodriguez, Area Technician
Serving Imperial, Los Angeles, Orange, Riverside, San Bernardino and San Diego counties:
Patty Coronado, Area Coordinator
(760) 355-2208 ext. 109
Maggie Slater, Area Specialist
(760) 347-3675 ext. 122
Maria Elena Desamito, Area Specialist
(760) 347-3675 ext. 126
Latasha Kendrix, Area Specialist
Teon Gore Area Specialist
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