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.
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 household income that does not exceed the very low limit by county
- For grants, be age 62 or older
What is an eligible rural area?
Utilizing the USDA Eligibility Site you can enter a specific address for determination or just search the map to review general eligible areas.
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 $40,000
- Maximum grant is $10,000
- Loans and grants can be combined for up to $50,000 in assistance
What are the terms of the loan or grant?
- Loans are termed for 20 years
- Loan interest rate is fixed at 1%
- Full title service is required if the total outstanding balance on Section 504 loans is greater than $25,000
- Grants have a lifetime limit of $10,000
- Grants must be repaid if the property is sold in less than 3 years
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.
Applicant Resources:
Prior to applying, potential applicants are encouraged (but are not required) to go through an informal prequalification process to determine if the repair program may be a good fit for them. To start, potential applicants can contact their local Rural Development office and provide the following documentation:
- Form RD 3550-35, Section 504 Home Repair Loan and Grant Program Intake Form (Spanish version not available)
- Form RD 3550-1, Authorization to Release Information (Spanish version not available)
Very-low income homeowners in rural areas interested in applying for the repair program (preferably after going through the prequalification process as described above) can contact their local Rural Development office and provide the following documentation:
- Form RD 410-4, Uniform Residential Loan Application
- Form RD 410-4, Solicitud de Préstamo Residencial Único
- Form RD 3550-1, Authorization to Release Information (Spanish version not available)
- Form RD 3550-4, Employment and Asset Certification
- Form RD 3550-4, Certificación de Empleo y Patrimonio Certificación de Empleo
- All application items listed in Attachment 12-E Checklist (Spanish version not available)
Borrower Resources:
- Homeowners Information Guide - English version
- Homeowners Information Guide - Spanish version
Rural Development Staff and Application Packager Resources:
- 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 and grants.
- Repair 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.
- Repair packagers must sign a Memorandum of Understanding (MOU) with the State Office.
- Allowable packaging fees to any public, tribe or private nonprofit organizations may be included in repair loans and grants.
- Packagers are encouraged to visit the Direct Loan Application Packagers page for information and resources specific to packaging Section 502 Home Purchase Program.
- Eligibility for repair assistance considers the applicant's age, household income, and Total Debt (TD) ratio. To qualify for a grant, the applicant must be 62 or older.
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.
Most loans and grants are originated and/or serviced in the Area Office. Please contact the Area Office that services your County or Town. See our: Florida County Map. Please contact the USVI St. Croix Office for all of the USVI.
CRESTVIEW AREA OFFICE
Jeffrey Archer, Area Director
3070 Adora Teal Way, Suite C, Crestview, FL 32539
Work phone: 850-682-2416
Business cell: 850-333-2031
Fax: 855-473-8755
Counties served: Escambia, Holmes, Okaloosa, Santa Rosa and Walton.
MARIANNA AREA OFFICE
Loria Phillips, Area Director
2741 Pennsylvania Avenue, Suite 5, Marianna, FL 32448
Work phone: 850-526-2610
Business cell: 850-317-6572
Fax: 855-474-6969
Counties served: Bay, Calhoun, Franklin, Gadsden, Gulf, Jackson, Jefferson, Leon, Liberty, Wakulla and Washington.
LAKE CITY AREA OFFICE
Bruni Robles, Area Director
971 W Duval St, Suite 190, Lake City, FL 32055
Work phone: 386-719-5590
Business cell: 386-365-9576
Fax: 855-474-6983
Counties served: Baker, Bradford, Clay, Columbia, Duval, Hamilton, Lafayette, Madison, Nassau, Suwannee, St. Johns, Taylor and Union.
OCALA AREA OFFICE
Stephanie Hodges, Area Director
2441 NE 3rd Street, Suite 204-1, Ocala, FL 34470
Work phone: 352-732-7534
Business cell: 352-843-0042
Fax: 855-474-6990
Counties served: Alachua, Citrus, Dixie, Flagler, Gilchrist, Lake, Levy, Marion, Putnam, Seminole, Sumter and Volusia.
CHAMPIONS GATE AREA OFFICE
Angela Smith, Area Director
8390 Champions Gate Blvd, Suite 210, Champions Gate, FL 33896
Work phone: 863-420-4833
Fax: 855-474-8230
Counties served: Brevard, Hernando, Hillsborough, Indian River, Orange, Osceola, Pasco, Pinellas and Polk.
ROYAL PALM BEACH AREA OFFICE **(see Sub Office information)
Ada Rivera, Area Director
420 South State Road 7, Suite 166, Royal Palm Beach, FL 33414
Work phone: 561-792-2727
Fax: 855-475-4827
**N. Ft. Myers (Sub Office of Royal Palm Beach)
Ada Rivera, Area Director
3434 Hancock Bridge Pkwy., Suite 209-A, N. Ft. Myers, FL 33903
Work phone: 239-997-7331
Fax: 855-475-8043
Counties served from Royal Palm Beach and North Fort Myers: Broward, Dade, Glades, Hendry, Highlands, Martin, Monroe, Okeechobee, Palm Beach, St. Lucie, Charlotte, Collier, DeSoto, Hardee, Lee, Manatee and Sarasota.
ST. CROIX U.S. VIRGIN ISLANDS AREA OFFICE
Kimme Bryce, Area Director
4401 Sion Farm, Ste. #2, Christiansted, St. Croix, VI 00820
Work phone: 340-773-9146
Business cell: 340-201-4211
Fax: 855-475-6940
Locations served: St. Croix, St. John and St. Thomas.