Rural Home Repair & Housing Assistance
USDA Section 504 Home Repair Loans & Grants, a federal program that helps qualifying very-low-income rural homeowners repair their homes and remove health and safety hazards.
Deferred repairs are one of the quiet ways rural families lose ground on a homestead. A failing roof, unsafe wiring or a broken heating system does not stay a small problem, and conventional credit is not always available to fix it.
USDA Rural Development runs a program aimed squarely at this: Single Family Housing Repair Loans & Grants, commonly called the Section 504 Home Repair Program. This page explains it in plain language. This is not a veterans program: veteran status is not required, and it is not limited to any one group of homeowners.
What is Section 504?
Section 504 provides two distinct forms of assistance, which can be used separately or combined:
- Loans: for qualifying very-low-income homeowners: to repair, improve or modernise a home, or to remove health and safety hazards.
- Grants: for qualifying very-low-income homeowners age 62 or older, and limited to removing health and safety hazards. Grants are narrower in purpose than loans.
A grant is not a general home-improvement fund. Cosmetic upgrades and new construction are outside the program.
Who may qualify?
USDA sets the criteria and makes every decision. In general, an applicant must:
- own the home and occupy it;
- have a household income within the applicable very-low-income limit for the area;
- be located in an eligible rural area as USDA defines it;
- be unable to obtain affordable credit elsewhere;
- be age 62 or older for the grant portion specifically;
- meet any other current USDA program requirements.
Meeting these does not guarantee assistance. Funding availability, the condition and nature of the repairs, and USDA's own review all matter.
Is my property in an eligible rural area?
"Rural" here is a federal program definition, not a description of scenery. Properties that feel rural are sometimes ineligible, and properties near the edge of a town are sometimes eligible. Do not assume either way, check the address against USDA's official property eligibility tool.
What can the money be used for?
Loans may generally be used to repair, improve or modernise the home, and to remove health and safety hazards: roofing, electrical, plumbing, heating, structural repairs and accessibility work among them.
Grants are restricted to removing health and safety hazards. Accessibility modifications such as a wheelchair ramp are a common qualifying use. Grants generally cannot be used for modernisation or cosmetic improvement.
How much assistance is available?
As currently published by USDA:
- Maximum loan: $40,000
- Maximum grant: $10,000 (lifetime limit)
- Maximum grant where the home is in a qualifying presidentially declared disaster area: $15,000
- Combined loan and grant: up to $50,000
- Combined in qualifying disaster circumstances: up to $55,000
Figures as published and checked August 12, 2026. Verify current amounts with USDA before relying on them. These limits have been revised in the past, older articles still circulating online quote a $20,000 loan and $7,500 grant, which are out of date. If USDA's figure differs from ours, USDA's controls.
Loan terms
- Interest rate: 1% fixed
- Term: up to 20 years
- Full title service is required where the loan balance exceeds USDA's threshold (currently $25,000)
- A lien may be required, as with other secured lending
Grant repayment rules
A grant does not carry monthly payments, but it is not unconditional. If the property is sold within the applicable period after assistance, currently three years, the grant must be repaid. Grants are also subject to a lifetime maximum per household, so an earlier grant reduces what remains available later.
If you may sell within a few years, factor the repayment obligation in before applying, and ask USDA to confirm exactly how it would apply to you.
Disaster-damaged homes
USDA currently provides a higher grant maximum where the home was damaged in a qualifying presidentially declared disaster area. The ordinary Section 504 eligibility requirements still apply, very-low income, rural location, ownership and occupancy, and age 62 or older for a grant.
USDA has also operated separate disaster assistance funding at various times, with its own availability windows. If your damage is disaster-related, ask the local office which path fits, and see our Texas Disaster Recovery & Property Resources for the state and county side of recovery.
Texas income limits
Income limits vary by county and household size, and USDA updates them. We deliberately do not reproduce a county-by-county chart here, because a stale income table is worse than no table, it can talk a qualifying family out of applying.
How to apply
Applications are accepted on an ongoing basis, and the process generally starts with a person rather than a form. Contact USDA Rural Development for Texas or your local Rural Development office and ask to speak with a home loan specialist about Section 504. They can tell you whether the property is in an eligible area, what the current income limit is for your county and household size, and which forms to complete.
A word of caution: companies sometimes offer to prepare federal program applications for an upfront fee. You can contact USDA directly at no cost, and USDA will not reimburse such fees out of your assistance.
An important reminder
Funding availability and processing times vary, and neither we nor any third party can promise approval or a decision date. Nothing on this page is an application, a pre-qualification, or a commitment of funds. Only USDA can tell you whether you qualify.
Texas Homestead Law provides educational information and links to official sources. We do not administer this program, determine eligibility, process applications or provide financial, tax or legal advice, and we are not affiliated with the U.S. Department of Agriculture. Program figures, income limits and requirements change, confirm current terms with USDA Rural Development.
Sources & references
The USDA Rural Development Single Family Housing Repair Loans & Grants page is the controlling authority for program purpose, eligibility, assistance limits, loan terms and grant repayment conditions. Property eligibility is determined through USDA's official eligibility tool, and current income limits are published by USDA. Applications are made through USDA Rural Development in Texas and local Rural Development offices.
The program is authorised under Section 504 of the Housing Act of 1949 and administered under USDA's direct single family housing regulations.
All figures on this page are subject to change by USDA and should be verified before you rely on them. Reviewed August 12, 2026.