USDA Section 504 Home Repair Loans & Grants

USDA Rural Development

Open Home Repair

About This Program

USDA Rural Development's Section 504 program provides loans up to $40,000 at 1% interest to very-low-income homeowners in eligible rural areas to repair, improve, or modernize their homes, along with grants up to $10,000 (combined limit $50,000) to homeowners age 62+ to remove health and safety hazards. Alabama is one of 25 states selected for an expanded pilot program through December 2026.

Loan (1% interest): up to $40,000; Grant (age 62+): up to $10,000; combined max $50,000.

Key Details

  • Must be in an eligible rural area (verify at USDA eligibility map)
  • Very-low income required (below 50% AMI)
  • Loans up to $40,000 at 1% interest
  • Grants up to $10,000 for homeowners age 62+ (safety hazard removal)
  • Alabama pilot program active through December 2026

How to Apply

Visit Official Program Page Track this program

800-414-1226

Deadline: Open through December 2, 2026 (pilot); contact local RD office

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