USDA Section 504 Home Repair Loans & Grants

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

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