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
1550 Earl Core Road, Suite 101
Morgantown, WV 26505
(304) 284-4860 | (304) 284-4891 fax

Beckley Area Office
Tracey Rowan, Acting Area Director
(304) 253-9597 | Fax: (304) 929-2025
481 Ragland Road
Beckley, WV 25801
Counties served: Fayette, Greenbrier, Mercer, Monroe, Nicholas, Pocahontas, Raleigh and Summers

Cross Lanes Area Office
Tracey Rowan, Area Director
(304) 776-5298 | Fax: (304) 776-5326
418 Goff Mountain Road, Room 103
Cross Lanes, WV 25313
Counties served: Boone, Cabell, Clay, Kanawha, Lincoln, Logan, McDowell, Mingo, Putnam, Wayne and Wyoming

Elkins Area Office
Alan Harris, Acting Area Director
(304) 636-2158 | Fax: (304) 636-5902
Randolph Center Building
1200 Harrison Avenue, Suite 150
Elkins, WV 26241
Counties served: Barbour, Berkeley, Braxton, Gilmer, Grant, Hampshire, Hardy, Harrison, Jefferson, Lewis, Marion, Mineral, Monongalia, Morgan, Pendleton, Preston, Randolph, Taylor, Tucker, Upshur and Webster

Ripley Area Office
Alan Harris, Area Director
(304) 372-3441 | Fax: (304) 372-6856
2118 Ripley Road
Ripley, WV 25271-5106
Counties served: Brooke, Calhoun, Doddridge, Hancock, Jackson, Marshall, Mason, Ohio, Pleasants, Ritchie, Roane, Tyler, Wetzel, Wirt and Wood

Lewisburg Office
179 Northridge Drive
Lewisburg, WV 24901
(304) 645-7422 | Fax: (304) 647-9627
Counties served: Greenbrier, Monroe, Nicholas, Pocahontas & Summers

Martinsburg Office
151 Aikens Center, Suite 4
Martinsburg, WV 25401
(304) 263-7547 | Fax: (304) 267-9172
Counties served: Berkeley, Jefferson and Morgan

 McMechen Office
1 Ball Park Drive
McMechen WV 26040
(304) 242-0576 | Fax: (304) 242-7039
Counties served: Brooke, Hancock, Marion, Marshall, Monongalia, Ohio, Preston, Tyler and Wetzel

 Romney Office
500 East Main St., Suite E
Romney, WV 26757
(304) 822-3020 | Fax: (304) 822-3728
Counties served: Grant, Hampshire, Hardy, Mineral and Pendleton

Weston Office
24 Gateway Drive
P.O. Box 626
Weston, WV 26452
(304) 269-8431 | Fax: (304) 269-7583
Counties served: Barbour, Braxton, Gilmer, Harrison, Lewis, Randolph, Taylor, Tucker, Upshur and Webster

White Hall Office
53 Mountain Park Drive
White Hall, WV 26554
(304) 366-2921 | Fax: (304) 363-7027