Rural Housing: Housing Repair 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.

Loan Program Description
The Rural Housing Repair Loans and Grants program provides loans and grants to very low-income homeowners to repair, improve, modernize, or to remove health and safety hazards in their rural dwellings. Loans are arranged for up to 20 years at 1% interest. Grants may be arranged for recipients who are 62 years of age or older and can be used only to pay for repairs and improvements to remove health and safety hazards. Loan/grant combinations may be arranged for applicants who can repay part of the cost. Very low-income for this program is defined as below 50 percent of the area median income.

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
In order to begin the application process, 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);

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

If you are 62 years or older, you may qualify for a housing repair grant.

To apply for a loan or grant, you may contact your state's Rural Development field office.

Loan Managing Agency
U.S. Department of Agriculture