Rural Housing: Natural Disaster Loans and Grants

General Loan Program Requirements
The Very Low-Income Housing Repair program provides loans and grants to very low-income homeowners to repair, improve, or modernize their dwellings or to remove health and safety hazards. Furthermore, you must be a US citizen or permanent resident who lives in a rural area.

Natural Disaster Loans and Grants are available in counties designated under a Presidential Disaster Declaration. These funds are made available to the extent that funds are not provided by FEMA, SBA, or other agencies

Loan Program Description
To assist very-low income owner- occupants to repair or replace damaged property as a direct result of a natural disaster. Loans are made in counties named by the Federal Management Agency (FEMA) as being eligible for Federal assistance under an emergency declaration by the President.

Applicants must own and occupy the home in a rural area. Loan recipients must have sufficient income to repay the loan. Grant recipients must be 62 years of age or older and be unable to repay a loan for that part of the assistance received as a grant. The applicant's income for a loan may not exceed the very low-income limit which can be obtained in any Rural Development (RD) field office.

Natural disasters will only include those areas identified by a Presidential declaration. Funds are only available to the extent that funds are not provided by FEMA. Applicants must establish that physical damage was caused by natural disaster. For Section 504 loans/grants, there must be evidence of ownership and verification of income and debts. For grant recipients, evidence of age is required. The applicant must be unable to get credit elsewhere and demonstrate repayment for the loan.

Loan Terms
Loans of up to $20,000 and grants of up to $7,500 are available. Loans are for up to 20 years at 1 percent interest. A real estate mortgage is required for loans of $2,500 or more. Full title services are required for loans of $7,500 or more. Grants may be recaptured if the property is sold in less than three years. Loans and grants can be combined for up to $27,500 in assistance

Loan Application Process
Direct Loan and Grant applicants can obtain and submit the following forms via the Internet at http://www.sc.egov.usda.gov :

Form RD 410-4, "Application for Rural Housing Assistance (Nonfarm Tract), Uniform Residential Loan Application";
Form RD 3550-1, "Authorization to Release Information" (copies for each adult household member).

Applicants must file applications from the date of declaration/designation and until supplemental appropriated funds are exhausted.

For further information about the application process or to request that the Agency mail an application or can obtain one in person at any Field Office.

Loan Program Contact Information

All applications for loans are handled at the local level. For help with an application, contact your Rural Development staff.

Interested applicants should contact their local USDA Rural Development field office for more information. To obtain contact information for the field office nearest you, visit:
Phone: 202-260-2502

Loan Managing Agency
U.S. Department of Agriculture