USDA Funding Available for Home Repairs for Low Income Home Owners
FUNDING, FUNDING, FUNDING AVAILABLE
Help low and very low-income applicants by marketing the Section 502 Direct Loan Program and low-income and moderate income applicants by marketing the 502 Guaranteed Program.
Advantages:
- 100% financing
- No Down payment requirement
- Fixed interest rate
- Seller contributions limited 6%
Note: Guaranteed loan has associated fees; 1% guarantee fee (can be financed into total loan amount); .35% lender fee.
504 LOAN/GRANT FUNDING
The Section 504 loan/grant program is to help very low-income owner occupants to repair their homes. Loan funds are available for repairs to improve or modernize a home, make it safer or more sanitary, or remove health and safety hazards. Grant funds are available to remove health or safety hazards, or remodel dwellings to make them accessible to a household member with a disability.
- Applicants living in extreme poverty could be eligible for 100% grant assistance up to the allowable $7,500 maximum lifetime limit for eligible project costs
- Affordable loans at a fixed 1% interest rate. A minimum $1,000 loan, only $4.60 per month or 15 cents per day
- Qualified homeowners may receive a maximum loan of $20,000 at a fixed 1% interest rate. Loans and grants may be combined for up to $27,500 in total assistance
- Very-low-income homeowners with a repayment ratio between 30% to 46% may be eligible for a 50% loan and 50% grant
- Grant recipients must be age 62 or older
Maximum loan amount is $20,000. Maximum grant amount $7,500 lifetime limit.
For More information visit https://www.rd.usda.gov/nj