Section 504 Grant Process:  Single Family Housing Repair and Private Well and Septic System Repairs in Your State

Section 504 Grant Application Process (USDA Single Family Housing Repair Grants)The grant portion of the Section 504 program is available only to very-low-income homeowners aged 62 or older for removing health and safety hazards. Grants do not need to be repaid (except if the home is sold within 3 years). The maximum is generally $10,000 ($15,000 in presidentially declared disaster areas).

Applications are accepted year-round (October 1 – September 30) as funding allows and are processed in the order received. Approval times vary by local funding availability.

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Step-by-Step Application Process

1. Confirm Eligibility
   
   
• Own and occupy the home as your primary residence.
  
  
• Household income at or below the very-low-income limit for your area (varies by location and household size).
  
  
• Property located in an eligible rural area.
  
  
• Age 62+ for the grant (loans have no age requirement).
  
  
• Unable to obtain affordable credit elsewhere. Tools: Use the USDA Income and Property Eligibility map or contact your local office.

2. Contact Your Local USDA Rural Development Office
   
   This is the most important first step. A USDA home loan specialist can:
   
   
• Pre-screen your eligibility.
  
  
• Guide you through required forms.
  
  
• Answer questions specific to your area.
  
  Find contacts: rd.usda.gov/browse-state or the state office locator.

3. Submit Initial Intake / Pre-Qualification
   
   Start with:
   
   
• Form RD 3550-35 (Section 504 Home Repair Loan and Grant Program Intake Form) — provides household, income, expense, and repair cost details.
  
  
• Form RD 3550-1 (Authorization to Release Information) — signed by each adult household member.

4. Prepare and Submit the Full Application Package
   
   If pre-qualified, submit the complete package (use the official Attachment 12-E Checklist):
   
   
• Form RD 410-4 (Uniform Residential Loan Application) — complete and sign relevant pages.
  
  
• Proof of identity, age, and taxpayer ID (e.g., driver’s license, Social Security card).
  
  
• Income verification: Pay stubs, tax returns (last 2 years), benefit statements, etc.
  
  
• Asset verification: Bank statements.
  
  
• Credit information and explanations for any issues.
  
  
• Proof of homeownership (deed, tax assessment).
  
  
• Current property tax and insurance statements.
  
  
• Repair bids: Itemized contractor bids (with license info) describing the work.
  
  
• Photos of the home and needed repairs.

5. USDA Review and Processing
   
   
• The office verifies income, credit, property eligibility, and repair needs.
  
  
• A property inspection may be scheduled.
  
  
• If approved, you’ll sign grant agreements.
  
  
• Funds are typically disbursed directly for approved repairs (often through contractors).

6. After Approval
   
   
• Complete the repairs as specified.
  
  
• Grants have a lifetime limit and possible repayment if the home is sold soon after.
  
  
• Work with your specialist for any required documentation or inspections.

Helpful Resources

• Official Fact Sheet: Download PDF (Fact Sheet)
  
  
• Application Checklist (Attachment 12-E): Available on the USDA site.
  
  
• Forms: Search at forms.sc.egov.usda.gov (e.g., RD 3550-35, 410-4).
  
  
• Local Offices: Use the state dropdown on the program page or the locator tool.

Tip: Submit a complete package the first time to avoid delays. Local offices can help assemble everything. Funding is limited, so apply as early as possible in the fiscal year.

For the most accurate guidance tailored to your situation, contact your local USDA Rural Development office directly — they provide personalized assistance. Let me know if you need help finding contacts for a specific state!

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

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