Are There Federal Grants for Home Repairs?

Are there federal grants for home repairs, or are most programs loans?

Both grants and loans exist, but a federal funding source does not always mean a homeowner applies to a federal office. USDA makes Section 504 loans and grants available through its Rural Development offices. HUD funding, including CDBG and HOME, often reaches homeowners through state and local administrators.

According to USDA Rural Development, the Section 504 loan maximum is $40,000, with a fixed 1% interest rate and a 20-year term. Its grant maximum is $10,000; a loan and grant may be combined for up to $50,000. These are USDA program limits, not a promise of an award or a statement of what a local program offers.

The work allowed also differs. USDA loans can fund repairs, improvements, modernization, and the removal of health or safety hazards. USDA grants are restricted to removing health and safety hazards. HUD describes CDBG-supported rehabilitation as potentially including emergency repairs such as leaky-roof replacement, accessibility improvements, lead-paint abatement, and bringing substandard housing up to code.

HUD’s 2023 CDBG notice says rehabilitation assistance may be provided as direct loans, grants, or other financing. Local grantees administer activities under federal requirements and their own applicable rules. Ask whether an advertised program is a grant, a repayable loan, or another financing arrangement before applying.

Who qualifies for a USDA Section 504 home repair grant?

A USDA Section 504 grant is for a homeowner age 62 or older who meets the very-low-income limit and needs funds to remove health or safety hazards. The applicant must own and occupy the home, and the home must be in an eligible rural area. USDA also requires that applicants meet program eligibility rules; its loan eligibility criteria include being unable to obtain affordable credit elsewhere.

Loan and grant rules are not interchangeable. USDA loans serve low- and very-low-income homeowners who own and occupy their home, cannot obtain affordable credit elsewhere, meet county income limits, and live in an eligible rural area. The age threshold and very-low-income requirement apply to grants. A homeowner who does not qualify for the grant can still ask USDA whether a loan fits their circumstances.

Grant repayment is a key condition. USDA says grants must be repaid if the property is sold in less than three years. That rule makes the grant’s value dependent not only on eligibility and repair needs, but also on whether the household can meet the ownership condition. Confirm the repayment terms with the office handling the application.

Can I get a home repair grant if I’m under 62?

Not through the USDA Section 504 grant: USDA sets an age minimum of 62 for grant applicants. An applicant under that age can still check eligibility for a USDA Section 504 loan, since the published loan criteria do not set that age minimum.

Local assistance is another route to investigate. HUD says Community Planning and Development funds are awarded by formula to cities annually, and cities without a direct allocation can access that funding through their state. HUD identifies CDBG, Section 108 Loan Guarantee, and HOME as programs that can support housing rehabilitation priorities.

Local terms vary. HUD’s Community Development information describes CDBG entitlement grants to eligible cities and counties and a State CDBG program for smaller units of local government. Housing rehabilitation and homeowner assistance are possible activities, but each administrator sets program availability and eligibility within federal rules. Start with the place that administers housing funds where the property is located.

For a related distinction, a home-repair program is separate from a purchase subsidy. See What Is a New Home Owner Grant, and Who Can Get One? for an overview of grants connected to buying a home.

How do I find out if my address is eligible for USDA repair assistance?

Use USDA’s Income and Property Eligibility site to check a specific address, then contact the local Rural Development office about income limits and the application. USDA eligibility depends on both the property and the household, so an address check is only one part of the decision.

For locally administered help, take a location-first approach:

1. Contact the city or county housing or community development department and ask whether it offers owner-occupied home-repair assistance funded by CDBG, HOME, or another program.
2. If the locality does not administer the funds directly, ask the state housing or community development agency which local governments receive funding and where residents apply.
3. Check HUD’s community funding allocations and contact a local HUD Community Planning and Development office if the administering agency is unclear.
4. Ask a HUD-approved housing counselor for help finding programs. HUD lists the housing counseling number as 1-800-569-4287.

Prepare to describe the home, the repair, who owns and occupies it, and the household’s income. Ask the agency what documentation it requires, whether funds are currently available, whether the work must address a health or safety issue, and whether assistance must be repaid or secured against the property. The local agency can confirm its own rules; federal program descriptions do not establish every local application requirement.

For USDA applications, the agency lists forms RD 3550-35 and RD 3550-1 as initial documents. Depending on the full application, forms RD 410-4 and RD 3550-4 and the Attachment 12-E checklist may also be required. Confirm the current checklist with the local Rural Development office before gathering paperwork.