Aging in Place Grants

USDA Section 504 Home Repair Loans and Grants

Updated October 18, 2026 · By the Aging in Place Grants research desk · How we research

Rural homeowners with very low incomes can get 1% repair loans, and those 62 and older can get grants to remove health and safety hazards.

At a glance

Key amounts (check the source for the current figure)
Maximum loan$40,000
Maximum grant (lifetime)$10,000
Grant maximum in a presidentially declared disaster area$15,000
Maximum loan and grant combined$50,000
Loan interest rate1% fixed
Loan term20 years

What it can pay for

  • Ramps and other changes that remove a safety hazard for an older or disabled resident
  • Fixing unsafe steps, floors or railings
  • Repairing a leaking roof or failing heating system
  • Replacing unsafe wiring or plumbing
  • Modernizing an outdated home (loans only)
  • Repairing or replacing a failed well or septic system

Who qualifies

  • You must own the home and live in it
  • The home must be in an area USDA counts as rural (check the USDA eligibility map)
  • Household income must be at or below the 'very low' limit for your county, which USDA sets at 50% of area median income
  • You must be unable to get affordable credit somewhere else
  • Grants are only for homeowners 62 or older; loans have no age rule

How to apply

  1. Check whether your address is in an eligible rural area using the USDA Income and Property Eligibility website.
  2. Look up the very-low-income limit for your county on the same site and compare it with your household income.
  3. Call or visit your local USDA Rural Development office. Ask about prequalifying, which is encouraged but not required.
  4. Gather the forms USDA lists, including the RD 410-4 application, and proof of income, ownership and age.
  5. Get repair estimates for the work you need. USDA will review the project and your ability to repay any loan portion.
  6. Wait for approval before work begins. Applications are taken year-round while funds last.

Watch out for

  • Grant money can only be used to remove health and safety hazards. Loans are needed for general updates.
  • If you sell the home within three years, you must repay the grant.
  • Funding is first come, first served. In some years local offices run low late in the fiscal year (which ends September 30).
  • Loans over $25,000 require full title service, which can add time.
  • Suburban edges of cities may or may not count as rural. Always check the map instead of guessing.

The short version

The USDA Section 504 Home Repair program helps homeowners in rural areas fix their homes. It has two parts 1:

  • Loans of up to $40,000 at a fixed 1 percent interest rate, paid back over 20 years
  • Grants of up to $10,000 for homeowners 62 and older, used to remove health and safety hazards

You can combine a loan and a grant for up to $50,000 in total 1. In areas hit by a presidentially declared disaster, the grant limit is $15,000 2.

For many older adults in small towns, this is one of the best deals around. A 1 percent rate is far below what most banks charge.

Who can use it

You must own the home and live in it 1. You must also be unable to get affordable credit somewhere else.

The rural rule

The home must be in an area USDA counts as rural. This is not the same as "country." Many small towns and some areas near cities still qualify. USDA has an Income and Property Eligibility website where you type in an address and get an answer 2.

The income rule

Your household income must be at or below the "very low" income limit for your county 1. USDA defines very low income as 50 percent of the area median income 3. Because the limit is based on local incomes, the dollar amount changes a lot from county to county. Check the USDA eligibility site for your county's number.

The age rule

Grants are only for homeowners who are 62 or older 1. Loans do not have an age rule.

What the money can pay for

Loans can be used to repair, improve or update a home, or to remove health and safety hazards 1.

Grants can only be used to remove health and safety hazards 1.

What does that mean for aging in place? Hazards often include:

  • Steps or a porch that are unsafe to climb
  • A bathroom where an older person is likely to fall
  • Broken railings or loose flooring
  • A failing furnace in a cold climate
  • Unsafe wiring or plumbing

Projects like ramps, grab bars or a safer shower may qualify as hazard removal when they protect an older or disabled resident. Your local USDA office makes the call, so describe the safety risk clearly when you apply.

How the loan and grant mix works

If you are 62 or older, USDA looks at how much you can afford to pay each month. If you cannot afford any payment, you may get a grant only. If you can afford some payment, you may get part loan and part grant. If you can afford the whole cost as a loan, you may get a loan only.

This is why it helps to be honest and complete about your income and bills. A clear picture can lead to a better mix.

How to apply, step by step

  1. Check your address. Use the USDA Income and Property Eligibility site 2.
  2. Check your income. Look up the very-low-income limit for your county on the same site.
  3. Call your local Rural Development office. Ask if you can prequalify. It is encouraged but not required 1.
  4. Fill out the forms. USDA lists forms including RD 410-4, RD 3550-1 and RD 3550-4, plus a checklist 1.
  5. Get estimates. Have a contractor write up the work and cost.
  6. Wait for approval. Do not let anyone start before you have it in writing.

USDA takes applications all year while funds last, and processes them in the order they come in 2.

Things to know before you sign

Selling soon? Think twice. If you sell the home within three years, you must repay the grant 1.

Bigger loans take longer. Loans over $25,000 need full title service 2. That can add paperwork and time.

Money can run out. Funds are first come, first served. Applying early in the federal fiscal year, which starts October 1, can help.

Grants are lifetime. The $10,000 grant limit is a lifetime cap, not per year 1. Use it for the most important safety fix first.

Questions to ask the USDA office

  • Is my address eligible?
  • What is the very-low-income limit for my household size here?
  • Will the grant cover my specific safety project?
  • Do you have funds left this fiscal year?
  • How long are approvals taking right now?

How it fits with other help

Section 504 often pairs well with other programs. The Weatherization Assistance Program may cover insulation and furnace work, while 504 handles the safety repairs. Local nonprofits and Area Agencies on Aging can sometimes fill small gaps. Veterans should also look at VA grants.

Common questions

Do I have to be 62 to get a USDA 504 grant?

Yes. The grant is only for homeowners who are 62 or older. Younger homeowners can still apply for the 1% loan if they meet the income and location rules.

Can I get a loan and a grant together?

Yes. Homeowners 62 and older who can afford some monthly payment may get a mix of loan and grant, up to $50,000 combined. USDA decides the split based on your income and debts.

What counts as rural for the 504 program?

USDA decides by address. Many small towns and areas outside big cities qualify. Use the USDA eligibility website to check your exact address.

Can a 504 grant pay for a walk-in shower or grab bars?

Grants must be used to remove health or safety hazards. For an older adult at risk of falls, accessibility changes can qualify. Ask your local USDA office how they treat your specific project.

Do I have to pay the grant back?

Only if you sell the home within three years of getting it.

Sources

  1. Single Family Housing Repair Loans & Grants — USDA Rural Development. Checked October 18, 2026.
  2. Single Family Housing Repair Loans and Grants fact sheet (May 2025) — USDA Rural Development. Checked October 18, 2026.
  3. Section 504 Repair Loans and Grants handbook training (Chapter 12) — USDA Rural Development. Checked October 18, 2026.