Quick answer: What the USDA 504 grant covers (and how much)
If you’re 62 or older, own and live in your home, have very-low income, and your home is in a USDA-eligible rural area, you may get a USDA Section 504 grant to remove health or safety hazards—think unsafe wiring, failing heat, collapsing steps, leaking roof, or accessibility fixes. The grant max is $10,000, or $15,000 if repairing a home damaged in a presidentially declared disaster area. You can also pair a 1% Section 504 loan (up to $40,000 for 20 years) with a grant for up to $50,000 total (or $55,000 in disaster areas). Rural Development+1
Bottom line: Seniors 62+ can get grant dollars for hazards—and add a 1% loan if the project is bigger.
Eligibility made simple: age 62+, income, rural, and hazard
You must meet all of the following:
- Age: 62 or older (grants). Loans have no age requirement. ecfr.gov
- Ownership & occupancy: You own the home and live in it. Rural Development
- Income: Your household’s adjusted income is at or below the very-low-income limit for your county. (USDA uses local limits.) Rural Development
- Credit elsewhere: You cannot get affordable credit elsewhere. ecfr.gov
- Rural location: The property sits in a USDA-eligible rural area (check your address on the USDA map). eligibility.sc.egov.usda.gov
- Hazard: The work removes health/safety hazards or makes essential accessibility modifications. ecfr.gov
What counts as a “health or safety hazard”
USDA prioritizes repairs that eliminate hazards—for example: unsafe electrical systems, failed heating that risks pipes/health, leaking roofs/structural rot, broken steps/handrails, plumbing failures, or accessibility work (ramps, grab bars, widened doors) when needed by a household member with a disability. (See 7 CFR §3550.102 for purposes and restrictions below.) ecfr.gov
Bottom line: If it clearly protects health/safety or enables access, it’s usually eligible.
Manufactured homes and accessibility upgrades
Section 504 can fund hazard repairs in mobile/manufactured homes if you own the home and site, you already occupy it, and it is (or will be) on a permanent foundation with 504 funds. Accessibility features or equipment may be covered if needed for a household member’s disability. ecfr.gov
Bottom line: Manufactured homes can qualify—foundation and ownership rules apply.
504 grant vs 504 loan vs combining both (how to choose)
| Option | Best for | Key limits/terms | Pros | Cons |
|---|---|---|---|---|
| 504 Grant | Seniors 62+ with hazards that can be fixed within $10k (or $15k in disaster areas) | Max $10k lifetime (or $15k disaster); must repay if you sell within 3 years | No monthly payment | Limited dollars; hazard-only; 3-year recapture rule Rural Development+1 |
| 504 Loan | Projects up to $40k (hazard + general repairs/modernization) | 1% interest, 20-year term; title service if > $25k | Low payment; broader uses | Monthly payment; credit/repayment ability required Rural Development |
| Grant + Loan | Larger hazard projects (e.g., roof + wiring) | Up to $50k total ($55k disaster) | Maximizes scope; keeps payment low | Some loan paperwork; grant still has 3-year rule Rural Development |
Bottom line: Use the grant to erase hazards; add the 1% loan when the fix needs more than the grant cap.
Step-by-step: Apply and get funded fast
1) Check rural and income eligibility (10 minutes)
- Enter your address and household income on the official USDA Eligibility site to screen for rural area and income. eligibility.sc.egov.usda.gov
Bottom line: If your address shows as eligible and your income is at or below very-low, move to documentation.
2) Gather documents (same week)
USDA suggests a brief prequalification with your local Rural Development office. Common items:
- Forms: RD 3550-35 (504 Intake) and RD 3550-1 (Authorization to Release Info) to start; your state page may list more. For full application, RD 410-4 (Uniform Residential Loan App), RD 3550-4 (Employment & Asset Certification), and the Attachment 12-E checklist. Rural Development
- Proof of identity and age (for grants, 62+).
- Proof of ownership & occupancy (deed, tax bill, insurance, utility in your name). ecfr.gov
- Income verification (award letters, pay stubs if any, bank statements). ecfr.gov
- Photos of hazards and repair bids/estimates from licensed contractors (or detailed DIY scope if allowed).
Bottom line: An organized packet shaves days off processing.
3) Define the project scope to remove hazards
- USDA prioritizes hazard removal when funding is tight. Keep scope focused on code, safety, and accessibility. ecfr.gov
- If costs exceed the grant, ask the specialist to structure grant + loan.
Bottom line: A clear hazard narrative (“what’s dangerous and why”) speeds approvals.
4) Submit to your state/area RD office (year-round)
- Applications are accepted year-round; approval time varies by funding availability. Rural Development
- Some states post extra instructions on their state 504 page—follow them exactly. Rural Development
Bottom line: Funding is first-come; early, complete applications win.
5) Home visit & environmental/repair review
- Expect verification of hazards and a review to ensure the post-repair home won’t have major hazards and work meets local code. ecfr.gov
6) Approval, contractor selection, and draws
- RD may require title service when total 504 loan balances exceed $25,000. Rural Development
- Funds may be released in draws as work proceeds/inspects. Keep all invoices/receipts.
Bottom line: Treat this like a small construction project—scoped, permitted, inspected, documented.
Document checklist (print-friendly)
- ✅ RD forms: 3550-35 intake; 3550-1 release; (if moving forward) 410-4 loan app; 3550-4 employment/asset; Attachment 12-E checklist. Rural Development
- ✅ Age 62+ proof (for grant), ID, SSN (if requested). ecfr.gov
- ✅ Deed/tax bill, homeowner’s insurance, recent utility to show occupancy. ecfr.gov
- ✅ Income (Social Security/SSI/VA/pension award letters, pay stubs if any, bank statements). ecfr.gov
- ✅ Hazard photos (close-ups + wide shots), contractor estimates, permits if already pulled.
- ✅ If manufactured home: proof the home & site are owned and permanent foundation status/plan. ecfr.gov
Bottom line: Label files by type and date; upload or hand-deliver as your office prefers.
Avoid delays: common mistakes that stall approvals
- Scope creep: Adding “nice-to-have” upgrades. Keep scope hazard-focused for grants. ecfr.gov
- Missing income/ownership proof: Incomplete packets go to the bottom of the pile. Rural Development
- Not checking rural eligibility first: Save time by screening your address. eligibility.sc.egov.usda.gov
- No contractor license/insurance: RD may require licensed/insured contractors depending on state policy.
Bottom line: Hazard-first, complete, eligible—that’s your fast-track.
What you must know about repayment, liens, and the 3-year rule
- Grant recapture: If you sell the property within 3 years, you must repay the grant (recapture). Plan to stay at least 3 years. Rural Development+1
- Lifetime grant cap: $10,000 total lifetime (or $15,000 if repairing a home damaged in a presidentially declared disaster area). Rural Development
- Loans: Fixed 1% for 20 years; title service if total 504 loan balance > $25,000. Rural Development
- Eligible vs. not eligible uses: Grants = hazard/accessibility only; loans = general repairs/modernization also. Certain uses are restricted (no new construction, no off-site improvements, etc.). ecfr.gov
Bottom line: Grants are powerful but come with conditions—know the caps and the 3-year rule.
Example budgets (how seniors actually use 504)
Example A: $8,000 electrical hazard (grant-only)
- Scope: Replace hazardous knob-and-tube wiring; add GFCIs; repair panel.
- Funding: $8,000 grant (meets hazard test; age 62+; income VLI; rural).
- Result: No payments; must stay 3 years or repay. Title service not triggered (no loan). Rural Development
Bottom line: If the hazard fits under $10k, grant-only is fastest.
Example B: $25,000 roof + structural rot (grant + loan)
- Scope: Tear-off roof, replace decking; correct rot; replace unsafe stairs/rails.
- Funding: $10k grant + $15k loan at 1%/20 yrs (~$69/mo per USDA state pages’ examples; actual amortization per RD). Title service not required if total 504 loan balance ≤ $25k. Rural Development+1
Bottom line: Pair the grant with a small 1% loan to finish big safety jobs.
Troubleshooting: if funds are tight or your area isn’t “rural”
- Funding availability varies; approvals depend on your state’s current budget. Apply early, and ask about prioritization (hazard removal gets priority when funds are scarce). Rural Development+1
- Borderline rural? The map changes; addresses near town edges sometimes qualify. Always check the official map. eligibility.sc.egov.usda.gov
- Denied due to “credit elsewhere”? Document why other financing is not affordable (rates, terms, income). ecfr.gov
- Manufactured home not on permanent foundation? Budget the foundation work within the project if feasible. ecfr.gov
Bottom line: Many denials can be fixed with better documentation or a tighter hazard scope.
FAQs
1) How much can a senior get from a USDA Section 504 grant?
Up to $10,000 total lifetime—or $15,000 if repairing a home damaged in a presidentially declared disaster area. You can combine with a 1% 504 loan up to $40,000 for a larger project. Rural Development+1
2) What repairs are eligible for a 504 grant?
Repairs that remove health or safety hazards or make the home accessible for a household member with disabilities (e.g., wiring, roof leaks, failing heat, unsafe steps, ramps/grab bars). ecfr.gov
3) Do I have to repay a 504 grant?
Yes, if you sell the home within 3 years of the grant. Otherwise, there’s no monthly payment. Rural Development+1
4) Can I get both a grant and a loan?
Yes. USDA allows grant + 1% loan combinations—up to $50,000 total ($55,000 in disaster areas). Rural Development
5) Does my home have to be in a “rural area”?
Yes. Use the official USDA Eligibility site to verify your address. eligibility.sc.egov.usda.gov
6) I live in a manufactured home—am I eligible?
Yes, if you own the home and site, already occupy it, and it’s on a permanent foundation (or will be with 504 funds). ecfr.gov
7) What if my income is slightly above “very-low”?
504 grants/loans require very-low income. Ask RD about other programs if you’re over the limit, or recheck after changes in income/household. Rural Development
8) How fast can I get help?
Applications are accepted year-round; approval depends on funding and a complete packet. Hazards are prioritized when funds are tight. Rural Development+1
9) Who qualifies for a USDA 504 grant for seniors?
Homeowners age 62+, very-low income, owner-occupants in USDA-eligible rural areas, who cannot get affordable credit elsewhere, and need to remove health/safety hazards. Rural Development+1
10) How do I check if my home is in a rural area?
Use USDA’s Eligibility map to confirm the address. eligibility.sc.egov.usda.gov
11) What if my project costs more than $10,000?
You can add a 1% 504 loan (up to $40,000) and combine with the grant for up to $50,000 (or $55,000 if repairing a disaster-damaged home). Rural Development
12) Are accessibility improvements covered?
Yes—grants may fund modifications when needed for a household member with disabilities. ecfr.gov
13) Is there a deadline to apply?
USDA accepts applications year-round (funding-dependent). Rural Development
14) Will USDA require a lien or title work?
Title service is required if your total 504 loan balance exceeds $25,000. (Grants don’t trigger title service but are recaptured if you sell within 3 years.) Rural Development
15) What repairs are not allowed?
New construction, off-site improvements (except utility connections), and projects that would leave major hazards even after repairs. ecfr.gov
16) Can manufactured homes qualify?
Yes, with ownership, occupancy, and permanent foundation requirements. ecfr.gov
Disclaimer
This article is general information, not legal or financial advice. USDA rules and funding change and vary by state. Always confirm details with your USDA Rural Development office or a qualified housing counselor.
Sources (high-authority)
- USDA Rural Development – Section 504 Program Page (caps/terms, disaster amounts, 3-year recapture, title service): Source: USDA RD, last checked November 1, 2025. Rural Development
- USDA Section 504 Fact Sheet (May 2025) (1% loans, 20-year term, $40k/$10k/$15k, year-round applications): Source: USDA RD, last checked November 1, 2025. Rural Development
- eCFR – 7 CFR Part 3550 Subpart C (§3550.101–.106, .102 purposes/restrictions; §3550.103 eligibility; manufactured home/foundation; prioritization): Source: eCFR, last checked November 1, 2025. ecfr.gov
- USDA Income & Property Eligibility site (rural map & income screening): Source: USDA, last checked November 1, 2025. eligibility.sc.egov.usda.gov