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What Does the Home Repair Loan and Grant Program Do?
The Home Repair Loan and Grant Program provides loans to very-low-income homeowners to repair, improve, or modernize their homes. It also offers grants to elderly, very-low-income homeowners to remove health and safety hazards. The goal of the Home Repair Loan and Grant Program is to assist those who may not have access to affordable credit elsewhere and to ensure their homes are safe and livable.
Who May Apply for the Home Repair Loan and Grant Program?
To qualify for the Home Repair Loan and Grant Program, applicants must meet several criteria: Homeowner and Occupant: The applicant must be the homeowner and occupy the house. Credit Access: Applicants must be unable to obtain affordable credit elsewhere. Income Limit: The household income must not exceed the very low limit set by the USDA for their county. Age Requirement for Grants: For the grant portion of the Home Repair Loan and Grant Program, applicants must be at least 62 years old.
What is an Eligible Rural Area?
Eligibility for the Home Repair Loan and Grant Program is determined by location. Applicants can use the USDA Eligibility Site to enter a specific address for determination or search the map to review general eligible areas. This ensures that the Home Repair Loan and Grant Program focuses on areas that need assistance the most.
How May Funds Be Used?
Funds from the Home Repair Loan and Grant Program can be used in various ways: Loans: These can be used to repair, improve, or modernize homes or remove health and safety hazards. Grants: These must be used specifically to remove health and safety hazards.
How Much Money Can I Get?
The Home Repair Loan and Grant Program provides substantial financial assistance: Maximum Loan: Up to $40,000. Maximum Grant: Up to $10,000. Combined Assistance: Loans and grants can be combined for up to $50,000 in assistance.
What Are the Terms of the Loan or Grant?
The Home Repair Loan and Grant Program offers favorable terms: Loan Term: Loans are termed for 20 years. Loan Interest Rate: Fixed at 1%. Title Service: Full title service is required if the total outstanding balance on Section 504 loans is greater than $25,000. Grant Limit: Grants have a lifetime limit of $10,000. Grant Repayment: Grants must be repaid if the property is sold in less than 3 years.
Is There a Deadline to Apply?
Applications for the Home Repair Loan and Grant Program are accepted year-round through local USDA Rural Development (RD) offices. Approval times depend on funding availability in the applicant's area.
How Long Does an Application Take?
The approval time for applications to the Home Repair Loan and Grant Program depends on the availability of funding in the applicant's area. It is recommended to contact a USDA home loan specialist for assistance with the application process.
Who Can Answer Questions and How Do I Get Started?
To get started with the Home Repair Loan and Grant Program, applicants should contact a USDA home loan specialist in their area. These specialists can provide guidance on the application process and answer any questions.
Why Does USDA Rural Development Do This?
The Home Repair Loan and Grant Program aims to help people stay in their homes and keep them in good repair. This helps families and communities by promoting homeownership, which can help build savings over time, strengthen communities, and support local economies. For the most up-to-date information, applicants should consult the program instructions and contact their local office for assistance. The Home Repair Loan and Grant Program remains a crucial resource for improving the living conditions of low-income homeowners across the United States.