USDA Section 504 Home Repair Loan

U.S. Department of Agriculture Rural Development

Available Home Repair

About This Program

USDA loan program for very low-income homeowners in eligible rural areas near Capitola to repair or improve their homes. Loans up to $40,000 at 1% interest with 20-year repayment. Income must not exceed 50% of area median income and home must be in USDA-eligible rural area.

Low-interest loan at 1% repaid over 20 years

Federal program, maintained from the official federal source.

Data last verified 2026-06-09. How we verify our data.

Key Details

  • Loan up to $40,000 at 1% interest
  • 20-year repayment term
  • Income at or below 50% AMI
  • Must be in USDA-eligible rural area
  • For repairs to make home safe and sanitary

How to Apply

Get free help applying Visit Official Program Page Track this program

(800) 414-1226

A grant-savvy contractor in Capitola, CA can handle the paperwork, inspections, and timelines so your funding releases on schedule. Getting matched is free.

You will likely need a contractor to apply

Projects like this almost always need a licensed contractor, and many grants ask for a written estimate as part of your application. Lining up a contractor in Capitola early keeps your application moving.

Get matched with a contractor

Each program sets its own contractor rules. Check the official program page for exact requirements.

Your application paperwork

Form to file: USDA Form RD 410-4 (with RD 3550-1 and RD 3550-4)

Very low income rural homeowners can get a loan to repair or modernize their home, and homeowners age 62 and older can get a grant to remove health and safety hazards. Loans and grants combine up to 50,000 dollars, with grants capped at 10,000 dollars. You apply through your local USDA Rural Development office.

Steps to apply

  1. Check that your address is in an eligible rural area on the USDA eligibility site.
  2. Contact your local USDA Rural Development office.
  3. Complete the application packet (Form RD 410-4, plus RD 3550-1 and RD 3550-4).
  4. USDA verifies your income, age, and eligibility, then approves the repair work.
Get the official formDownload the fillable PDF

Documents you will likely need

  • Proof you own and live in the home.
  • Income verification for your household.
  • Proof of age (for the grant, age 62 or older).
  • Estimates for the repair work.
Download this checklist (PDF)

Requirements vary by program and locality. Confirm the exact rules on the official program page. We can help you prepare your paperwork, but you submit it yourself.

Deadline: Rolling applications

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