Program 101

Fact Sheet

Program Status: Open

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 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

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? 

  • Home loans are available year round as long as funding is available
  • Home loan applications are processed in the order they are received

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.

Forms & Resources

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:

Applicants interested in applying for a repair loan or grant can contact their local Rural Development office and provide the following documentation:

Borrower Resources:

Rural Development Staff and Loan Application Packager Resources:

  • Recent Changes to the Section 504 Program
  • 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:
    1. 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.
    2. Adjusted annual income exceeding 30% of AMI with Total Debts (TD) between 30%-46% may qualify for both a repair loan and grant.
    3. Adjusted annual income exceeding 30% of AMI with Total Debts (TD) less than 30% may qualify for up to a $20,000, twenty-year, 1% interest rate loan.

Training Resources:

Webinar on the Repair Loan & Grant Changes effective Oct 5, 2017
   • Handout for the Webinar

 

Architect

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.

Contacts

State Office:

Main Phone Number: (530) 792-5800 extension 1

USDA Rural Development
Attn: Single Family Housing
430 G St, Agency 4169
Davis, CA 95616

Ron Tackett, California Single Family Housing Program Director
(530) 792-5816

Debbie Morris, SFH Specialist
(530) 792-5820

Nancy Larson, SFH Specialist
(530) 792-5808

Tamye Binning, SFH Technician
(530) 792-5823

Kallii Lane, SFH Technician
(530) 792-5802

Local Offices

Auburn Office: Serving Alpine, Calaveras, El Dorado, Mono, Nevada, Placer and Sierra Counties
Robert Canepa, Area Specialist
(530) 217-6252

Bakersfield Office: Serving Inyo, Kern, Santa Barbara and Ventura Counties
Roberto Palomino, Area Specialist
(661) 281-2737

Armando Aparicio, Area Specialist
(661) 281-2743

Eureka Office: Serving Del Norte and Humboldt Counties
Zachary Frater, Area Specialist
(707) 443-6714

Fresno Office: Serving Fresno County
Liz Vannata, Area Specialist
(559) 490-8030

Alba Lazaro, Area Specialist
(559) 490-8028

Imperial Office: Serving Imperial and San Diego Counties
Patty Coronado, Area Specialist
(760) 355-2208 ext. 109

Indio Office: Serving Los Angeles, Orange, Riverside and San Bernadino Counties
Maggie Slater, Area Specialist
(760) 347-3675 ext. 122

Teon Gore, Area Specialist
(760) 347-3675 ext. 121

Latasha Kendrix, Area Specialist
(951) 902-6564

Maria Elena Desamito, Area Specialist
(760) 347-3675 ext. 126

Merced Office: Serving Madera, Mariposa, Merced, San Joaquin, Stanislaus and Tuolumne Counties
Alma Jaquez, Area Specialist
(209) 205-4970

Oroville Office: Serving Amador, Butte, Colusa, Sacramento, Solano, Sutter, Yolo and Yuba Counties
Darunee Kent, Area Specialist
(530) 693-3178

Nicole Roldan-Leben, Area Specialist
(530) 693-3162

Frances Parker, Area Technician
(530) 693-3153  

Redding Office: Serving Glenn, Lassen, Plumas, Shasta, Tehama and Trinity Counties
Cheri Skudlarek, Area Specialist
(530) 226-2588

Salinas Office: Serving Alameda, Monterey, San Benito, San Francisco, San Mateo, Santa Clara and Santa Cruz Counties
Mark Hultgren, Area Specialist
(831) 975-7737

Lupe Benavides, Area Specialist
(831) 975-7738

Santa Rosa Office: Serving Contra Costa, Lake, Marin, Mendocino, Napa, and Sonoma Counties
Estella Apalatequi, Area Specialist
707-536-0249

Visalia Office: Serving Kings, San Luis Obispo and Tulare
Stacy Lopez, Area Specialist
(559) 754-3154

Rebecca Didway, Area Specialist
(559) 754-3158

Yreka Office: Serving Modoc and Siskiyou Counties
Dale Stretz, Area Specialist
(530) 572-3129