If you own a home in a rural area and cannot afford needed repairs, the USDA Section 504 Home Repair program may help. It offers very-low-income homeowners low-interest loans and, for older homeowners, grants to fix health and safety problems. Here is how the Section 504 program works. Figures and rules can change, so verify current details with USDA.
What the Section 504 Program Is
The Section 504 Home Repair program, run by USDA Rural Development, provides loans and grants to very-low-income rural homeowners to repair, improve, or modernize their homes or to remove health and safety hazards. It is one of the few genuine federal programs that includes grants for home repair, making it especially valuable for older homeowners on fixed incomes who cannot take on a loan.
The Loans
The program offers repair loans of up to $40,000 at a fixed 1 percent interest rate, with a term up to 20 years. These loans can be used broadly to repair, improve, or modernize a home, or to remove hazards. The very low interest rate makes them far more affordable than conventional financing, which is the point: to help low-income owners keep their homes safe and livable without a heavy debt burden.
The Grants for Seniors
Here is the standout feature. The program provides grants of up to $10,000 specifically to homeowners age 62 and older who cannot repay a loan, to remove health and safety hazards from the home. Unlike a loan, a grant does not have to be repaid, as long as you stay in the home. Loans and grants can be combined for eligible older homeowners, up to a higher total, which can fund a substantial repair project.
Who Qualifies
Eligibility has a few key requirements. You must own and occupy the home as your primary residence, your household income must be very low, generally below half of the area median income, and the property must be in a USDA-eligible rural area, which you can check on the USDA eligibility map. For the grants specifically, you must also be 62 or older and unable to afford a loan. Meeting these conditions opens access to this affordable help.
How to Apply
To apply, contact your local USDA Rural Development office, which handles applications and can confirm your eligibility, including whether your address is in a qualifying rural area. Be ready to provide proof of income, homeownership, and the repairs needed. One thing to note: the grant must be repaid if you sell the home within three years, but otherwise it is forgiven once you have stayed that long. See our guide to charities that help with medical bills for related help.
Combining With Other Help
Section 504 works well alongside other programs. You might pair a Section 504 grant with free weatherization for energy improvements, a local Community Development Block Grant repair program, or volunteer help from Rebuilding Together, since each covers different needs. If you are a senior or a person with a disability, also ask about accessibility modifications. Layering these programs is often how homeowners complete a full repair project affordably, so it is worth asking each program what it can contribute.
Why This Program Matters
For older and low-income rural homeowners, the Section 504 program can be the difference between staying safely at home and being forced out by disrepair. A failing roof, unsafe wiring, or a broken heating system is both dangerous and expensive, and conventional loans are often out of reach for this group. By offering a 1 percent loan and, for seniors, a grant that need not be repaid, the program keeps people in homes they own and love. If you or an older relative lives in a rural area and struggles with repairs, it is well worth exploring.
Section 504 FAQs
What is the Section 504 Home Repair program?
A USDA program offering very-low-income rural homeowners repair loans and, for those 62 and older, grants to remove hazards.
How much can I get?
Loans up to $40,000 at 1 percent interest, and grants up to $10,000 for homeowners 62 and older, which can be combined.
Who qualifies for the grants?
Very-low-income homeowners age 62 and older who cannot repay a loan, to remove health and safety hazards.
Does the program work in cities?
No. It applies in USDA-eligible rural areas, which you can check on the USDA eligibility map.
Do I repay the grant?
Only if you sell the home within three years. Otherwise the grant is forgiven once you have stayed that long.
How do I apply?
Contact your local USDA Rural Development office with proof of income, homeownership, and the repairs needed.
