Funding for Private Well and Septic System Repairs in Your State (Loan / Grant Program) 

Single Family Housing Repair Loans & Grants (also known as the Section 504 Home Repair program) is a USDA Rural Development initiative that helps very-low-income homeowners in eligible rural areas repair, improve, or modernize their homes, or remove health and safety hazards. (Source: rd.usda.gov)

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Key Features

• Loans: Available to very-low-income homeowners for repairs, improvements, modernization, or hazard removal. Maximum loan amount is $40,000.
  
  
• Grants: Targeted at elderly (age 62+) very-low-income homeowners, primarily for removing health and safety hazards. Maximum grant is $10,000 (or $15,000 in presidentially declared disaster areas).
  
  
• Combined Assistance: Loans and grants can be combined for up to $50,000 total.

Eligibility: To qualify, applicants must:

• Own and occupy the home as their primary residence.
  
  
• Be unable to obtain affordable credit elsewhere.
  
  
• Have household income at or below the very-low-income limit for the area (varies by location and household size).
  
  
• Live in an eligible rural area (check via the USDA Income and Property Eligibility website).
  
  
• For grants: Be 62 years or older.  

Grant Terms

• Loans: Repaid over 20 years at a fixed 1% interest rate. Full title services are required for loans over $25,000.
  
  
• Grants: Have a lifetime limit of $10,000 ($15,000 in disaster areas). Grants must generally be repaid if the property is sold within 3 years.

Application Process

• Applications are accepted year-round (October 1 – September 30) on an ongoing basis, processed in the order received as funding allows.
  
  
• Contact a local USDA Rural Development home loan specialist in your area (state/area offices listed on the site) to get started.
  
  
• Approval times vary based on local funding availability.
  
  
• Learn More about the Section 504 Grant/Loan Process.

This program is governed by the Housing Act of 1949 and related regulations. For the most current details, income limits, or to apply, visit the official page or contact your state USDA office, as information can change. A helpful fact sheet PDF is available directly on the site.

Program Website: https://www.rd.usda.gov/programs-services/single-family-housing-programs/single-family-housing-repair-loans-grants

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