Home Repair Loans and Grants

There are grants and loans and different home repair programs sponsored by Federal, State and local governments to help low-income families make needed home repairs. 

Those programs include:

Part 1: Section 504 Program

This program offers home repair loans and grants administered through Rural Development Agencies.

The loans are for very low-income families to pay for needed repairs or improvements to their home. There are also grants for seniors to remove safety or health dangers or to add safety features. Grants for seniors can go up to $7,500.00.

The loans and grants are for homes located in rural areas, suburbs, or smaller towns. 

To qualify, you must:

  • Live in a community that qualifies as a rural area. 
  • Occupy the house and be the homeowner.
  • Be unable to obtain affordable credit elsewhere
  • Have a family income below 50 percent of the area median income.
  • The maximum loan the Section 504 program will pay is$20,000.
  • The loans are at a fixed rate of 1% interest and must be paid back within twenty years.
  • For grants, eligibility requirements are to be age 62 or older and not be able to repay a repair loan.

To apply for a Section 504 loan or grant, you must go through your local Rural Development agency office. A contact list of the state offices for Rural Development is listed here.

Part 2: Rebuilding Together

Rebuilding Together is a nonprofit community revitalization organization that completes needed repairs for veterans, persons with disabilities, and low income families. Rebuilding Together takes a community approach to help repair homes in entire neighborhoods and enlists Americorp and the community in the process.

Here is a list of local Rebuilding Together agencies.

Part 3: Neighborworks

NeighborWorks offers a variety of home repair assistance programs, including helping you obtain a home repair loan, finding contractors and providing funds to make emergency repairs such as a broken water main or broken furnace with a low-interest loan or a grant with no monthly payments. Applications are taken at your local Neighborworks Homeownership Center (HOC).

See the Housing Counseling Services section for a list of HOCs.

Part 4: HUD Weatherization Programs

These programs are administered through your local Area Agency on Aging and are targeted for seniors and persons with disabilities and even some low-income families. To find out more, contact your local Area Agency on Aging.

Part 5: Habitat for Humanity Home Repair Program

In addition to building and renovating homes, Habitat for Humanity offers home repair services which include painting, weatherization and minor repairs to the exterior of the home.

Qualifications for the home repair program is based on income, need, and willingness of the homeowner to help. An affordable loan is made to the homeowner to cover the cost of the repairs.

For more information, a list of Habitat for Humanity offices can be found here.