USDA Section 504 Home Repair Program
USDA Section 504 offers loans (up to 20 years at 1% interest) and grants (up to $10,000 lifetime, for homeowners 62+ who can't repay a loan) for health, safety, and accessibility home repairs. It's limited to homeowners in USDA-designated rural areas with income below 50% of the area median, and combined loan-and-grant assistance is capped at $50,000.
If you own a home in a rural area and have limited income, Section 504 is worth checking before assuming a project is out of reach — it’s specifically designed for exactly this situation, including accessibility modifications.
Loans vs. grants: the key difference
Loans are available to eligible low-income rural homeowners generally, for repairs, improvements, or modernization — up to $50,000 (or $55,000 in presidentially declared disaster areas), at 1% interest, over up to 20 years.
Grants are specifically for homeowners age 62 or older who cannot repay a Section 504 loan, and must be used to remove health or safety hazards or to make a home accessible for a household member with a disability. Grants have a lifetime cap of $10,000 ($15,000 in presidentially declared disaster areas).
Loans and grants can be combined, with a combined cap of $50,000 ($55,000 in disaster areas).
Eligibility requirements
- Location: your home must be in a USDA-designated rural area — check the USDA Rural Development eligibility map (opens in a new tab) by address, since many areas that don’t feel obviously “rural” still qualify.
- Income: household income must be below 50% of the area median income.
- Ownership and occupancy: you must own and live in the home as your primary residence.
- Ability to repay: for the loan portion, you must be unable to obtain affordable credit elsewhere; grants are specifically for those who can’t repay a loan at all.
- Assets: you can keep up to $15,000 in liquid assets ($20,000 if 62+); amounts above that generally must go toward the repair first.
How to apply
Contact your local USDA Rural Development office — assistance is administered regionally, not through a single national application portal. Bring documentation of income, homeownership, and (for the accessibility-specific use of grant funds) documentation of the household member’s disability and the need for modification.
If Section 504 doesn’t apply to you
If you’re outside a USDA-eligible rural area, or your income is above the threshold, check Medicaid HCBS waivers (opens in a new tab) and nonprofit programs (opens in a new tab) like Habitat for Humanity’s Aging in Place initiative, which don’t carry the same rural-area restriction.
Frequently Asked Questions
How do I know if my home is in a USDA-eligible rural area?
USDA maintains an online eligibility map by address on the Rural Development website. Many areas that don't feel strictly 'rural' still qualify, since the designation is based on population thresholds rather than a strict geographic definition — check your specific address rather than assuming based on how the area feels.
Do I have to be a senior to get Section 504 help?
Loans are available to a broader group of low-income rural homeowners regardless of age. Grants specifically are limited to homeowners 62 or older who cannot repay a Section 504 loan, which is the piece most directly relevant to aging-in-place modifications.