What is the Section 504 Home Repair Program? How you can get

Whether they are old or new, any house needs maintenance from time to time. Now, any cosmetic is required, but that upgrade is not necessary when the basic service is necessary for many homes then, which can be a matter of concern for many people. Not every person has the financial capability to finance their repair needs.

That’s where section 504 home repair program comes as a saviour. There are many low-income residents, especially in rural areas of America, who have 50% less annual income than the average income of that area. This program is a government-backed loan and grants scheme. How can you access the program, and how to avail yourself of the benefits we have discussed in the article. 

What does the program do?

Section 504 home repair program is also known as single-family housing repair loans, and grants are designed and managed by the U.S. Department of Agriculture (USDA). Elders who are not financially stable, have low incomes, struggle with their daily financial needs, and don’t have the money to repair their homes can apply for the scheme. According to USDA’s rural development department, only those outside the metro cities can apply for the scheme with specific terms.

According to data, substandard homes in rural areas are large numbers, and the section 504 home repair program caters to vast amenities needed to live. It also helps homeowners with disabilities. The scheme is designed to modernize and repair single-family homes that cannot access regular loans because of low income. It helps with fixtures like insulation or water systems and allows homes with mobility issues to reduce the imminent danger of health hazards. 

Read Also: How to get housing grants for first home buyers?

When boys and girls have separate bedrooms?

But you need to take a closer look to understand how the scheme works. It is not expected that the government will support your dream home by financing a modular kitchen or anything; the basic purpose of the scheme is to make you survive. 

Loans under section 504 home repair service: 

Any person can take a maximum of $20,000 in this loan. And the interest is charged as fixed 1% with the repayment period fixed at 20 years. However, the loan of $7500 or more requires full title service. 

Grants under section 504 home repair service: 

Under the grants, you can only borrow $7500. However, you can combined borrow $27500. However, there is a provision that if you sell your home between 3 years, then you have to repay the total amount.

Qualifications to apply for the scheme: 

As the section 504 home repair program is meant for sure homeowners, not every person can avail of the scheme’s benefits. Some criteria which are needed to be fulfilled for availing of the scheme are,

  • Need to live in a rural area.
  • Need to have the legal owner of the house for which the loan is taken. 
  • Be a citizen of America.
  • Cannot take loans from other lenders.
  • Have an income that is less than half of the area’s average income.
  • If you want a grant, you must be older than 62 years. 

The loan amount is decided on the financial situation and owner’s other insurance, and checking other monthly debts. 

How to apply?

Anyone willing to take this offer can visit their local rural development office or service centre. On their website, they have a service centre locator also.

However, you should check with any financial expert before applying for the loan. Before that we also check your eligibility for this program.


The section 504 home repair program is a boon for those who are financially struggling to keep their basic need satisfied. The need for a good home in a developed country is expected. But due to some reasons when people cannot keep their homes fit even for the next generation, the scheme backs it up. For further information, you should check their website also. In addition to this money, some states like Carolina, California or others also provide extra monetary help. 

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