Program 101

Applications for this program are originated in the field office serving your county.  Select the Contacts tab above for the NC field office list.

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

ASHEVILLE AREA OFFICE

Pam Hysong, Area Director

160 Zillicoa Street, Suite #2

Asheville, NC 28801

828-254-0916K87N8hDcQTTKKFTioSxqB8Q2BNX5JtAljwgAAAAB

844-325-6823K87N8hDcQTTKKFTioSxqB8Q2BNX5JtAljwgAAAAB Fax

Email: linda.whitmire@nc.usda.gov

Counties Served: Buncombe, Henderson, Transylvania

 

JEFFERSON SUB AREA OFFICE

134 Government Circle

Suite 201

Jefferson, NC 28640

336-246-2885K87N8hDcQTTKKFTioSxqB8Q2BNX5JtAljwgAAAAB

844-325-6823K87N8hDcQTTKKFTioSxqB8Q2BNX5JtAljwgAAAAB Fax

Email: susan.roland@nc.usda.gov

Counties Served: Ashe, Watauga, Alleghany, Wilkes, Caldwell

 

FRANKLIN LOCAL OFFICE

195 Thomas Heights Rod

Franklin, NC 28734

828-524-3175K87N8hDcQTTKKFTioSxqB8Q2BNX5JtAljwgAAAAB

844-325-6823K87N8hDcQTTKKFTioSxqB8Q2BNX5JtAljwgAAAAB Fax

Email: pam.hysong@nc.usda.gov

Counties Served:  Macon, Haywood, Jackson, Cherokee, Clay, Graham, Swain

 

MURPHY LOCAL OFFICE

225 Valley River Avenue, Suite J

Murphy, NC 28906

828-837-2721K87N8hDcQTTKKFTioSxqB8Q2BNX5JtAljwgAAAAB

844-325-6823K87N8hDcQTTKKFTioSxqB8Q2BNX5JtAljwgAAAAB Fax

Email: pam.hysong@nc.usda.gov

 

SPRUCE PINE LOCAL OFFICE

11943 S. 226 Hwy Suite D

Spruce Pine, NC 28777

828-765-0889K87N8hDcQTTKKFTioSxqB8Q2BNX5JtAljwgAAAAB

844-325-6823K87N8hDcQTTKKFTioSxqB8Q2BNX5JtAljwgAAAAB Fax

Email: rebecca.pinto@nc.usda.gov

Counties Served: Mitchell, Yancey, Madison, Avery

 

SHELBY AREA OFFICE

Warren C. Smith, Area Director

844 Wallace Grove Road

Shelby, NC 28150

704-471-0235K87N8hDcQTTKKFTioSxqB8Q2BNX5JtAljwgAAAAB

844-325-6850K87N8hDcQTTKKFTioSxqB8Q2BNX5JtAljwgAAAAB Fax

Email: kevin.oliver@nc.usda.gov

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

336-767-0720K87N8hDcQTTKKFTioSxqB8Q2BNX5JtAljwgAAAAB

844-325-6850K87N8hDcQTTKKFTioSxqB8Q2BNX5JtAljwgAAAAB Fax

Email: terry.goddard@nc.usda.gov

Counties Served: Forsyth, Alexander, Burke, Davie 

 

STATESVILLE LOCAL OFFICE

444 Bristol Drive

Statesville, NC  28677

704-872-5061K87N8hDcQTTKKFTioSxqB8Q2BNX5JtAljwgAAAAB

844-325-6850K87N8hDcQTTKKFTioSxqB8Q2BNX5JtAljwgAAAAB Fax

Counties Served: Iredell, Catawba, Lincoln

Email: kevin.oliver@nc.usda.gov

 

DOBSON LOCAL OFFICE

220 Cooper Street

PO Box 66

Dobson, NC 27017

336-386-8751K87N8hDcQTTKKFTioSxqB8Q2BNX5JtAljwgAAAAB

844-325-6850K87N8hDcQTTKKFTioSxqB8Q2BNX5JtAljwgAAAAB Fax

Email: debbie.dickerson@nc.usda.gov

Counties Served: Surry, Yadkin, Stokes

 

LUMBERTON AREA OFFICE

Rossie Bullock, Area Director

PO Box 7426

440-C Caton Road

Lumberton, NC 28360

910-739-3349K87N8hDcQTTKKFTioSxqB8Q2BNX5JtAljwgAAAAB
844-325-6830K87N8hDcQTTKKFTioSxqB8Q2BNX5JtAljwgAAAAB Fax

Email:laci.fett@nc.usda.gov

Counties Served: Robeson, Bladen, Cumberland, Scotland, Hoke, Columbus

 

SMITHFIELD SUB AREA OFFICE

Johnston County Agric Service Bldg

2736 Hwy 210

Smithfield, NC 27577

919-934-7156K87N8hDcQTTKKFTioSxqB8Q2BNX5JtAljwgAAAAB

844-325-6830K87N8hDcQTTKKFTioSxqB8Q2BNX5JtAljwgAAAAB Fax

Email: lacia.flakes@nc.usda.gov

Counties Served: Johnston, Harnett, Sampson, Wake, Wilson

 

BOLIVIA LOCAL OFFICE

10 Referendum Drive

PO Box 108

Bolivia, NC  28422

910-253-4448K87N8hDcQTTKKFTioSxqB8Q2BNX5JtAljwgAAAAB

844-325-6830K87N8hDcQTTKKFTioSxqB8Q2BNX5JtAljwgAAAAB Fax

Email: paula.thrush@nc.usda.gov

Counties Served: Brunswick, New Hanover, Pender

 

ASHEBORO AREA OFFICE

847 Curry Drive, Suite 104

Asheboro, NC 27205

336-629-4449K87N8hDcQTTKKFTioSxqB8Q2BNX5JtAljwgAAAAB

844-325-6822K87N8hDcQTTKKFTioSxqB8Q2BNX5JtAljwgAAAAB Fax

Email: cody.smith@nc.usda.gov

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

919-775-3407K87N8hDcQTTKKFTioSxqB8Q2BNX5JtAljwgAAAAB

844-325-6822K87N8hDcQTTKKFTioSxqB8Q2BNX5JtAljwgAAAAB Fax

Email: margarita.marble@nc.usda.gov

Counties Served: Lee, Chatham, Moore

 

ROCKINGHAM LOCAL OFFICE

123 Caroline Street

Rockingham, NC  28379

910-895-3950K87N8hDcQTTKKFTioSxqB8Q2BNX5JtAljwgAAAAB

844-325-6822K87N8hDcQTTKKFTioSxqB8Q2BNX5JtAljwgAAAAB Fax

Email: pamela.edwards@nc.usda.gov

Counties Served: Richmond, Montgomery, Anson, Union

 

HENDERSON AREA OFFICE

853 S. Beckford Drive, Suite A

Henderson, NC 27536

252-438-3134K87N8hDcQTTKKFTioSxqB8Q2BNX5JtAljwgAAAAB

844-325-6826K87N8hDcQTTKKFTioSxqB8Q2BNX5JtAljwgAAAAB Fax

Email: tara.brooks@nc.usda.gov

Counties Served: Vance, Granville, Franklin, Warren, Orange, Durham, Person, Nash, Northampton

 

WINTON SUB AREA OFFICE

County Office Building

305 W. Tryon Street

PO Box 8

Winton, NC 27986

252-358-7836K87N8hDcQTTKKFTioSxqB8Q2BNX5JtAljwgAAAAB

844-325-6826K87N8hDcQTTKKFTioSxqB8Q2BNX5JtAljwgAAAAB Fax

Email: travis.lassiter@nc.usda.gov

Counties Served: Hertford, Gates, Chowan, Pasquotank, Perquimans, Camden, Currituck, Bertie

 

HALIFAX LOCAL OFFICE

Halifax County Agriculture Complex

359 Ferrell Lane

Box 7

Halifax, NC 27839

252-583-7171K87N8hDcQTTKKFTioSxqB8Q2BNX5JtAljwgAAAAB

844-325-6826K87N8hDcQTTKKFTioSxqB8Q2BNX5JtAljwgAAAAB Fax

Email: ed.james@nc.usda.gov

Counties Served: Halifax

 

KINSTON AREA OFFICE

Aaron Gaskins, Area Director

2044-C Hwy 11/55 South

PO Box 6189

Kinston, NC 28501-0189

252-526-9799K87N8hDcQTTKKFTioSxqB8Q2BNX5JtAljwgAAAAB

844-325-6827K87N8hDcQTTKKFTioSxqB8Q2BNX5JtAljwgAAAAB Fax

Email: stephanie.hardison@nc.usda.gov

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

252-752-2035/252-752-2880

844-325-6827K87N8hDcQTTKKFTioSxqB8Q2BNX5JtAljwgAAAAB Fax

Email: Lisa.Yocum@nc.usda.gov

Counties Served: Pitt, Martin, Washington, Tyrrell, Dare, Beaufort, Hyde, Edgecombe