Single Family Housing Grants and Repair Loans in PA
Did you know through the Government’s USDA Section 504 Home Repair Program, very-low-income homeowners can apply to repair, improve or modernize their homes, and elderly very-low-income homeowners can apply to remove health and safety hazards? Since this is a USDA program, you have to check for location eligibility in the state of PA as this is catered towards the “rural” areas. For example, Pottstown is excluded but the neighboring areas of Boyertown, Perkionmenville, and Gilbertsville ARE included for eligibility. Through this program, if you are eligible and accepted, you could receive up to a $10,000 grant OR a loan up to $40,000 (total combined of $50,000 in assistance). This is a great opportunity! To learn more, CLICK HERE for the USDA’s website.
Who may apply for this program?
To qualify, you must:
Be the homeowner and occupy the house
Be unable to obtain affordable credit elsewhere
Have a household income that does not exceed the very low limit by county
For grants, be age 62 or older
What is an eligible rural area?
Utilizing the USDA Eligibility Site you can enter a specific address for determination or just search the map to review general eligible areas.
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?
Maximum loan is $40,000
Maximum grant is $10,000
Loans and grants can be combined for up to $50,000 in assistance
What are the terms of the loan or grant?
Loans are termed for 20 years
Loan interest rate is fixed at 1%
Full title service is required if the total outstanding balance on Section 504 loans is greater than $25,000
Grants have a lifetime limit of $10,000
Grants must be repaid if the property is sold in less than 3 years
Is there a deadline to apply?
Applications for this program are accepted through your local RD office year round
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 home loan specialist in your area
What governs this program?
The Housing Act of 1949 as amended, 7 CFR Part 3550
HB-1-3550 - Direct Single Family Housing Loans and Grants Field Office Handbook
Why does USDA Rural Development do this?
Helping people stay in their own home and keep it in good repair helps families and their communities. Homeownership helps families and individuals build savings over time. It strengthens communities and helps many kinds of businesses that support the local economy.
For more information, go directly on the PA Government USDA website.