USDA Rural Housing 504 Loan Program

This program covers both major and minor home repairs. It is offered as a supplement to existing funding. Funds may be obtained to compliment a project for completion. There are two different programs, a grant and a loan. The maximum amount allotted for materials with the grant is $7500 and there is no lien placed on the home. The maximum amount allotted for materials with the loan is $20,000. This is a 1% interest loan over 20 years and a lien is placed on the home.

Description - Repair Loans

The 504 Loan program assists eligible very low-income applicants who are owner/occupants of a modest single family home in a rural area to make repairs to their dwelling. Loan funds are available to improve or modernize a home, or remove health and safety hazards.


House before USDA funded repairs


House after USDA funded repairs

Loan Purposes

Repair loans can be used to improve or modernize your house, remove health and safety hazards, or install convenience items.

Loan Terms

The maximum loan that an individual applicant may receive is $20,000 (at 1 percent interest rate) based on the applicant’s repayment ability and the cost to cover eligible repairs.


To be eligible for a loan, you must:
  • Be within the very-low income limit for the county where your home is located.
  • Be the owner of a single family dwelling.
  • Be able to repay the loan.
  • Be unable to borrow the money from another lending source.
  • Have a decent credit history.