The Rural Housing Repair Loans and Grants program, administered by the US Department of Agriculture, provides loans and grants to very low-income homeowners to repair, improve, modernize, or to remove health and safety hazards in their rural homes.
Loans are arranged for up to 20 years at 1 percent 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.
General Program Requirements
The Rural Housing Repair Loans and Grants program provides loans and grants to very low-income homeowners to repair, improve, or modernize their homes or to remove health and safety hazards. You must be a U.S. citizen or permanent resident who lives in a rural area.
To obtain a loan, homeowner-occupants must be unable to obtain affordable credit elsewhere and must have very low incomes, defined as below 50 percent of the area median income. They must need to make repairs and improvements to make the dwelling more safe and sanitary or to remove health and safety hazards. Grants are only available only to homeowners who are 62 years old or older and cannot repay a Section 504 loan.
Loans of up to $20,000 and grants of up to $7,500 are available. Loans are made for up to 20 years at 1 percent interest. A real estate mortgage is required for loans of $7,500 or more. Full title services are required for loans of $7,500 or more. Grants may be forfeited if the property is sold in less than three years. Loans and grants can be combined for up to $27,500 in assistance.
To apply for a loan or grant, or you should contact your state's Rural Development field office.