The 504 home repair program is a government-funded initiative that helps homeowners make necessary repairs to their homes. If you’re a homeowner and your home needs repairs, you may be eligible for assistance from the 504 home repair program. Keep reading to learn more about the program and how to apply.
The USDA Rural Development office administers the 504 home repair program. The program provides loans to low-income homeowners who are unable to obtain financing from other sources.
The 504 home repair program is a government-funded program that provides loans and grants to eligible homeowners who need repairs.
Table of Contents
• What Is Section 504 Home Repair Program
• Section 504 Program Application
➥Eligible For Home Improvement Grant
•Section 504 Loans
➥How Do Homeowners Repay Loans
•Section 504 Grants
➥What Are the Terms of Grants
•How Much Money Can Homeowners Receive
➥When Are the Funds Disburse
•Can I Sell My House Without Making Repairs
➥Sell Your House to ASAP Cash Offer
What Is Section 504 Home Repair Program?
The Section 504 Home Repair program is a government-funded initiative that helps low-income homeowners make necessary repairs to their homes. The program is administered by the USDA Rural Development office and provides loans and grants to eligible homeowners.
This may be a loan or grant and is based on the amount of money that you earn, as well as the cost of the repairs that need to be made.
Section 504 Home Repair Program Application

To apply for the Section 504 Home Repair program, you will need to contact your local USDA Rural Development office. You can find your local office by visiting the USDA website and entering your zip code in the search bar.
Once you’ve located your local office, you’ll need to gather the following documents:
- A completed application form
- Proof of income
- A list of the repairs needed
- An estimate of the cost of the repairs
Once you have all of the required documents, you will need to submit them to your local USDA Rural Development office. A representative will review your application and determine if you are eligible for assistance.
If you are approved for the program, you will be given a loan to cover the cost of the repairs. The loan will need to be repaid, but there is no interest charged on the loan. You will also be required to pay a monthly administration fee.
Who Is Eligible For Government Home Improvement Grant?
If you meet these criteria, you can apply for assistance. To be eligible for the program, homeowners must:
- Must be low-income (at or below 80% of the area median income).
- Own and occupy the home as their primary residence.
- Have a home that needs repairs in order to improve its health and safety.
- Be a U.S Citizen or legal resident.
- Be unable to obtain financing from other sources.
- Repairs must be necessary to improve the health and safety of the home.
What Kinds of Repairs Does the Program Cover?
The 504 home repair program can help with a variety of necessary repairs, including:
- Roof repair or replacement
- Electrical system repair or upgrade
- Plumbing system repair or upgrade
- Heating and cooling system repair or upgrade
- Accessibility modifications for people with disabilities
Section 504 Loans
The 504 home repair program offer loans to eligible homeowners. If you are approved for a loan, you will be required to repay the loan over a period of time. The terms of the loan will be determined by the USDA Rural Development office.
In most cases, loans from the 504 home repair program will have a fixed interest rate. This means that the amount you will be required to pay each month will not change over the life of the loan.

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Why Sell Your Home to ASAP Cash Offer?
- You Pay Zero Fees
- Close quickly 7-28 days.
- Guaranteed Offer, no waiting.
- No repairs required, sell “AS IS”
- No appraisals or delays.
How Do Homeowners Repay Loans?
Loans that are issued through the 504 home repair program must be repaid over a 20-year period. Homeowners will make monthly payments to the USDA Rural Development office, and the payments will include interest. The interest rate on 504 home repair loans is typically 1% lower than the current market rate.
Section 504 Grants
The 504 home repair program also offers grants to eligible homeowners. Unlike loans, grants do not need to be repaid.

Grants from the 504 home repair program can be used to cover the cost of repairs, and in some cases, homeowners may also be able to use grants to cover the cost of materials.
What Are the Terms of Grants?
There are some conditions that homeowners must meet in order to keep the grant money.
- Homeowners must live in the home for at least five years after the repairs are made.
- Must be 62 years of age or older.
- They must use the home as their primary residence.
- They must not sell or transfer the home during the five-year period.
If homeowners meet all of these conditions, they will be able to keep the grant money and do not have to repay it.
How Much Money Can Homeowners Receive?
The amount of money that homeowners can receive from the 504 home repair program depends on their individual circumstances. Factors that will be taken into account include the cost of the repairs, the homeowner’s income, and the value of the home.
In most cases, the maximum amount for grants is $7,500. Loans can be for up to $20,000. Or you can get both a grant and a loan for a total of up to $27,500.
When Are the Funds Disbursed?
The 504 home repair program provides funds to homeowners on a reimbursement basis. This means that homeowners will need to pay for the repairs out of their own pocket and then submit receipts to the USDA Rural Development office in order to receive reimbursement.
It can take up to six weeks for homeowners to receive reimbursement from the program.
Can I Sell My House Without Making Repairs?
If you sell your house before the five-year period is up, you will be required to repay the grant money that you received. You will not be required to repay any of the loan money.
But if the house needs a lot of work or major repairs, it would be better to sell the house than try to get the repairs done through the 504 home repair program. Then you may use the proceeds to buy a new home.

Why Should You Sell Your House to ASAP Cash Offer?
ASAP Cash Offer buys houses in any condition and can close on the sale of your house within 7-28 days. This means that you won’t have to wait for months to sell your house. We will also pay for all of the closing costs, so you won’t have to come out of pocket to sell your house. Contact us at (805)427-8312 today to learn more.