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
- Form RD 3550-1, Authorization to Release Information
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 3550-1, Authorization to Release Information
- Form RD 3550-4, Employment and Asset Certification
- All application items listed in Attachment 12-E Checklist
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.
Indiana State Office
5975 Lakeside Boulevard, Indianapolis, Indiana 46278-1996
Call us at 317-290-3100 TDD# 317-295-5799
Single-Family Housing Programs (SFH) - Direct
Laura Hamann
SFH Director
Office: 260-244-6266, Ext. 122
laura.hamann@usda.gov
Patrick O’Sullivan
SFH State Office Technician
Office: 317-295-5779
Patrick.Osullivan@usda.gov
Terri Weyer
SFH State Office Specialist
Office: 812-817-3441
terri.weyer@usda.gov
Benjamin Grosvenor
SFH Specialist
Office: 317-295-5779
Benjamin.Grosvenor@usda.gov
Gennifer Schaefer
SFH Specialist
Office: 574-249-7013
Gennifer.Schaefer@usda.gov
Elizabeth (Liz) Stanley
SFH Specialist
Office: 260-244-6266, Ext. 121
liz.stanley@usda.gov
Sandra (Sandy) Fannin
SFH Specialist
Office: 812-817-3467
Sandra.Fannin@usda.gov
Catherine (Cathie) Stratton
SFH Specialist
Office: 812-953-4174
Catherine.Stratton@usda.gov
Cynthia (Cindy) Coleman
SFH Technician
Office: 765-362-0405, ext. 112
Cynthia.Coleman@usda.gov
Jennifer Dafforn-Koebler
SFH Assistant
Office: (260) 244-6266, ext. 102
Jennifer.Dafforn-Koebler@usda.gov
Kevin Alvarez
SFH Assistant
Office: 812-953-4164
Kevin.Alvarez@usda.gov
Single Family Housing Guaranteed
SFHGLPFOUR@usda.gov
1-833-314-0168
Columbia City Area Office
788 W. Connexion Way, Suite E, Columbia City, IN 46725-1047
Call us at 260-244-6266 EXT #4
Adams, Allen, DeKalb, Huntington, LaGrange, Noble, Steuben, Wabash, Wells, and Whitley counties.
North Vernon Area Office
2600 Highway 7 North, North Vernon, IN 47265
Call us at 812-346-3411 EXT #4
Bartholomew, Brown, Clark, Dearborn, Decatur, Floyd, Franklin, Jackson, Jefferson, Jennings, Johnson, Lawrence, Morgan, Ohio, Ripley, Rush, Scott, Shelby, and Switzerland counties.
Muncie Area Office
3641 N Briarwood Lane, Muncie, IN 47304
Call us at 765-747-5531 EXT #4
Blackford, Delaware, Fayette, Grant, Hamilton, Hancock, Henry, Jay, Madison, Randolph, Tipton, Union, and Wayne counties.
Crawfordsville Area Office
2032 Lebanon Road, Crawfordsville, IN 47933-2143
Call us at 765-362-0405 EXT #4
Clay, Boone, Fountain, Hendricks, Montgomery, Owen, Parke, Putnam, Tippecanoe, Vermillion, Vigo, and Warren counties.
Jasper Area Office
1484 Executive Blvd, Jasper, IN 47546-9300
Call us at 812-482-1171 EXT #4
Crawford, Daviess, Dubois, Gibson, Greene, Harrison, Knox, Martin, Monroe, Orange, Perry, Pike, Posey, Spencer, Sullivan, Vanderburgh, Warrick, and Washington counties.
Knox Area Office
1410 South Heaton St. Knox, IN 46534-2314
Call us at 574-772-3066 EXT #4
Benton, Carroll, Cass, Clinton, Elkhart, Fulton, Howard, Jasper, Kosciusko, LaPorte, Lake, Marshall, Miami, Morgan, Newton, Porter, Pulaski, St. Joseph, Starke, and White counties.