What does this program do? 

Also known as the Section 504 Home Repair program, this program provides: 1) loans to very low-income homeowners to repair, improve, or modernize their homes, or 2) grants to elderly very low-income homeowners to remove health and safety hazards from their homes.

Who may apply for this program?

To qualify, you must:

  • Be the homeowner and live in the house;
  • Be unable to obtain affordable credit elsewhere;
  • Have a family income below 50% of the area median income; and
  • For grants, be age 62 or older and not be able to repay a repair loan.

What is an eligible area?

Applicants must check the address of their home to determine eligibility.

How may funds be used?

Loans may be used to repair, improve, or modernize homes or remove health and safety hazards. Grants must be used to remove health and safety hazards.

How much money can I get?

The maximum loan is $20,000. The maximum grant is $7,500. Loans and grants can be combined for up to $27,500 in assistance.

What are the terms of the loan or grant?

Loans can be repaid over 20 years. The loan interest rate is fixed at 1%. Full title service is required for loans of $7,500 or more.

Grants have a lifetime limit of $7,500. 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.

How long does an application take? 

Approval times depend on funding availability in your area. Talk to a USDA home loan specialist in your area for help with the application

Who can answer questions, and how do I get started?

Contact a USDA Service Center in your area:

Alamo (731) 696-5547 ext. 3
Bolivar (731) 658-3631  
Brownsville (731) 772-2965 ext. 3
Camden (731) 584-8186 ext. 3
Dresden (731) 364-5430  
Dyersburg (731) 287-9224 ext. 3
Huntingdon (731) 209-4153 ext. 3
Jackson (731) 668-1544 ext. 3
Lexington (731) 968-3551 ext. 3
Paris (731) 642-0761 ext. 2
Savannah (731) 925-3831  
Selmer (731) 645-5466 ext. 3
Tiptonville (731) 253-7532 ext. 3
Trenton (731) 855-0023 ext. 3
Union City (731) 885-6480 ext. 3


Acknowledgements & Disclaimer: This Fact Sheet was prepared by West Tennessee Legal Services (WTLS) and made possible by Serving Tennessee Seniors-administered by The Community Foundation of Middle Tennessee at the request of the Chancery Court. WTLS thanks the Tennessee Bar Association for its permission to use The Legal Handbook for Tennessee Seniors (2014 edition) as a primary information source. This publication is supported, in part, by funds provided by the Southwest Area Agency on Aging and Disability, the Tennessee Commission on Aging and Disability, and the U.S. Department of Health and Human Services. The content herein does not necessarily reflect the opinion or policy of the Southwest Area Agency on Aging and Disability or any agency of Tennessee or the U.S. government. Fact Sheets are for information only and not intended to replace legal advice. If you are in need of legal help, call WTLS at (800) 372-8346, or seek the help of a private attorney. (Revised 5/2017)