Applications for this program are originated in the field office serving your county. Select the Contacts tab above for the NC field office list.
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 household income that does not exceed the very low limit by county.
- For grants, be age 62 or older and not be able to repay a repair loan
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
- 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
- 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. A 504 Automated Worksheet tutorial is available here.
- 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.
- Income-Based Grant Assistance: Applicant meets the age requirement and their household income is within the grant income limit (based on county and household size).
- Ratio-Based Grant Only Assistance: Applicant meets the age requirement, their household income is within the very low income limit, and their TD ratio exceeds 41%.
- Ratio-Based Loan and Grant Combination Assistance: Applicant meets the age requirement, their household income is within the very low income limit, and their TD ratio does not exceed 41%.
- Ratio-Based Loan Assistance: No age requirement, the applicant's household income is with the very low income limit, and their TD ratio does not exceed 41%.
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.
ASHEVILLE AREA OFFICE
Jody Lovelace, Area Director
160 Zillicoa Street, Suite #2
Asheville, NC 28801
Counties Served: All Area One Counties
JEFFERSON SUB AREA OFFICE
134 Law Enforcement Dr., Suite 201
Jefferson, NC 28640
Counties Served: Ashe, Watauga, Alleghany, Wilkes, Caldwell
FRANKLIN LOCAL OFFICE
195 Thomas Heights Road
Franklin, NC 28734
Counties Served: Macon, Haywood, Jackson, Cherokee, Clay, Graham, Swain
MURPHY LOCAL OFFICE
225 Valley River Avenue, Suite J
Murphy, NC 28906
SPRUCE PINE LOCAL OFFICE
11943 S. 226 Hwy Suite D
Spruce Pine, NC 28777
Counties Served: Mitchell, Yancey, Madison, Avery, Buncombe, Henderson, Transylvania
SHELBY AREA OFFICE
Jody Lovelace, Area Director
844 Wallace Grove Road
Shelby, NC 28150
Counties Served: Cleveland, Gaston, McDowell, Polk, Rutherford, Mecklenburg
WINSTON-SALEM SUB AREA OFFICE
Forsyth County Agriculture Building Room 102
1450 Fairchild Drive
Winston Salem, NC 27105
Counties Served: Forsyth, Alexander, Burke, Davie
STATESVILLE LOCAL OFFICE
444 Bristol Drive
Statesville, NC 28677
Counties Served: Iredell, Catawba, Lincoln
DOBSON LOCAL OFFICE
220 Cooper Street
PO Box 66
Dobson, NC 27017
Counties Served: Surry, Yadkin, Stokes
LUMBERTON AREA OFFICE
Larry Sampson, Area Director
PO Box 7426
440-C Caton Road
Lumberton, NC 28360
Counties Served: Robeson, Bladen, Cumberland, Scotland, Hoke, Columbus
SMITHFIELD SUB AREA OFFICE
Johnston County Agric Service Bldg
2736 Hwy 210
Smithfield, NC 27577
Counties Served: Johnston, Harnett, Sampson, Wake, Wilson
BOLIVIA LOCAL OFFICE
10 Referendum Drive
PO Box 108
Bolivia, NC 28422
Counties Served: Brunswick, New Hanover, Pender
ASHEBORO AREA OFFICE
Kelley Woodley, Area Director
847 Curry Drive, Suite 104
Asheboro, NC 27205
Counties Served: Guilford, Randolph, Davidson, Rowan, Stanly, Cabarrus, Rockingham, Caswell, Alamance
SANFORD LOCAL AREA OFFICE
2416 Tramway Road
Ernest & Ruby McSwain Extension Educ & Ag Center
Sanford, NC 27332
Counties Served: Lee, Chatham, Moore
ROCKINGHAM LOCAL OFFICE
123 Caroline Street
Rockingham, NC 28379
Counties Served: Richmond, Montgomery, Anson, Union
HENDERSON AREA OFFICE
Shirlene Alexander, Area Director
853 S. Beckford Drive, Suite A
Henderson, NC 27536
252-438-3134 ext. 4
Counties Served: Vance, Granville, Franklin, Warren, Orange, Durham, Person,
WINTON SUB AREA OFFICE
County Office Building
305 W. Tryon Street
P.O. Box 8
Winton, NC 27986
Counties Served: Hertford, Gates, Chowan, Pasquotank, Perquimans, Camden, Currituck, Bertie, Northampton
HALIFAX LOCAL OFFICE
Halifax County Agriculture Complex
359 Ferrell Lane
P.O. Box 7
Halifax, NC 27839
252-583-7171 ext. 4
Counties Served: Halifax, Nash
KINSTON AREA OFFICE
Aaron Gaskins, Area Director
2044-C Hwy 11/55 South
PO Box 6189
Kinston, NC 28501-0189
Counties Served: Lenoir, Jones, Craven, Pamlico, Onslow, Carteret, Wayne, Greene, Duplin
GREENVILLE SUB AREA OFFICE
Pitt County Office Complex
403 Government Circle, Suite 3
Greenville, NC 27834
Counties Served: Pitt, Martin, Washington, Tyrrell, Dare, Beaufort, Hyde, Edgecombe
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