USDA Grants and Loans to Low-Income Homeowners for Home Repairs

Grants and loans for homeowner improvements in rural communities. 

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Kentucky contact information. 

Grants of up to $7,500 and low-interest loans of up to $20,000 are available to USA low-income homeowners in rural areas to improve their homes and address health hazards. The purpose of this program is to help people stay in their home and keep houses in good repair. Low-interest loans are available to repair, modernize, and improve homes. Grants are available to low-income elderly homeowners to remove health and safety hazards.

Loan and Grant Terms: -Loan interest rate is fixed at 1% -Full title service is required for loans of $7,500 or more -Grants must be repaid if the property is sold in less than 3 years -If applicants can repay part, but not all of the costs, applicants may be offered a loan and grant combination

Estimated Size of Grant:   Maximum loan is $20,000. Maximum grant is $7,500.
Loans and grants can be combined for up to $27,500 in assistance. Grants have a lifetime limit of $7,500.

Term of Contract:
Loans can be repaid over 20 years.

Eligibility: See Guidelines for full eligibility

Additional Eligibility Criteria:
To qualify, recipients must: -Be the homeowner and occupy the house -Be unable to obtain affordable credit elsewhere -Have a family income below 50 percent of the area median income

For grants, be age 62 or older and not be able to repay a repair loan Generally, rural areas with a population less than 35,000 are eligible. Applicants may check the address of their home to determine eligibility: https://eligibility.sc.egov.usda.gov/eligibility/welcomeAction.do?pageAction=sfp&NavKey

Pre-Application Information:Home loans are available year round as long as funding is available. Home loan applications are processed in the order they are received. Approval times depend on funding availability in your area. Talk to a USDA home loan specialist in your area for help with the application.

Contact Information:

Before starting your grant application, please review the funding source's website listed below for updates/changes/addendums/conferences/LOIs.