USDA Rural Development (RD) provides low-income and senior rural homeowners the ability to apply for loans and grants to make health and safety improvements and/or to modernize their homes. The USDA offers these programs because it believes that helping individuals to stay in their homes and to maintain their homes in good repair strengthens families and helps them to build savings and wealth over time. This, in turn, helps to support and develop strong communities and local economies.
Here is what to know if you would like to apply for a USDA RD loan or grant:
Eligibility Criteria
To qualify for the programs, you must:
• Own and occupy your home
• Be unable to obtain affordable credit elsewhere
• Meet certain income thresholds for your county
• Be at least age 18 for a loan and age 62 for a grant
• Live in a qualifying rural area. You can utilize the USDA Eligibility Site to enter your specific address to see if you qualify
Loan Information
• The maximum loan amount for which an owner can qualify is $40,000
• Loans must be used to repair, improve, or modernize homes or to remove health and safety hazards
• Loans have a term of 20 years
• Loan interest rate is fixed at 1%
• Full title service is required if the total outstanding balance on the loan exceeds $25,000
Grant Information
• The maximum lifetime grant amount is $10,000
• Grants must be used to remove health and safety hazards
• Grants must be repaid if the property is sold in less than 3 years
Loans and grants can be combined for up to $50,000 in assistance. Applications for the program are accepted through your local Rural Development office year-round. Approval times depend on funding availability in your area. You can speak with a local USDA home loan specialist for help with the application.
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