Single Family Housing Section 504 Home Repair Loan & Grant ...

Single Family Housing Section 504

Home Repair Loan & Grant Program

Program Information &

Application Package

USDA is an equal opportunity provider, employer and lender.

Thank you for your interest in USDA Rural Development's Single Family Housing Repair Loan and Grant Programs.

These programs provide loans to very-low income homeowners to repair, improve or modernize their homes or grants to elderly (aged 62 or older), very-low income homeowners to remove health and safety issues. Applicants must be the homeowner, occupy the home, and the home must be located in an eligible rural area.

The following documents are enclosed: ? Program Fact Sheet ? Attachment 12-E ? Checklist of Items to Accompany the Loan Application ? Guidance for Obtaining Contractor Repair Bids ? RD 410-4 Uniform Residential Loan Application ? RD 3550-1 Authorization to Release Information ? RD 3550-4 Employment and Asset Certification

To apply for Rural Development Single Family Housing repair assistance, complete and sign the enclosed application and accompanying forms. Then return with all pages of the requested documents to your local Rural Development field office:

USDA Rural Development 220 West First Street Morehead, KY 40351 Office: 606-784-6447 ext. 4 Fax: 855-770-7590

Please contact the above Rural Development office with any questions.

USDA is an equal opportunity provider, employer and lender.

USDA Rural Development

Rural Housing Service Programs

Single Family Housing Repair Loan & Grant Pilot

What does this program do?

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

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 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 What is an eligible area?

Generally, rural areas with a population less than 35,000 are eligible. Applicants may check the address of their home to determine eligibility online.

What are the terms of the loan or grant?

? Loans can be repaid over 20 years ? Loan interest rate is fixed at 1% ? Full title service is required for loans exceeding

$25,000 ? Grants have a lifetime limit of $10,000 ? 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 Is there a deadline to apply?

Applications are available year round as long as funding is available, and are processed in the order they are received.

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.

How do I get started?

How may funds be used?

Contact a USDA home loan specialist in your area.

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

? Grants must be used to remove health and safety hazards.

How much money can I get?

What law 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

? Maximum loan is $40,000. ? Maximum grant is $10,000. ? Loans and grants can be combined for up to $50,000 in assistance.

NOTE: Because citations and other information may be subject to change, please always consult the program instructions listed in the section above titled "What Law Governs this Program?" You may also contact your local office for assistance.

You will find additional forms, resources, and program information at rd.

For Additional Questions or an Application, Contact: Morehead, Kentucky Field Office

Fax: 855-770-7590 Phone: 606-784-6447 ext. 4

USDA is an equal opportunity provider,employer and lender.

revised 10/2019

What Qualifies as a Rural Area?

Generally, rural areas with a population less than 35,000 are eligible, however eligibility is subject to change. To determine property eligibility, visit:

**Property Eligibility Disclaimer: Areas shown in red represent ineligible areas. Rural Development does not guarantee the accuracy or completeness of this information. Final determination of property eligibility will be made by Rural Development upon receipt of a complete application.

HB-1-3550 Attachment 12-E

Page 1 of 2

CHECKLIST OF ITEMS TO ACCOMPANY APPLICATION FOR HOME REPAIR LOAN OR GRANT FUNDS

Applicant Name: Co-Applicant Name: Applicant Email: Preferred contact? Mail:

Phone:

Phone:

Cell:

Phone:

Cell:

Co-Applicant Email:

Cell:

Email:

Check the boxes below when completed

REQUIRED FORMS: Please submit the following documentation:

Form 410-4, "Uniform Residential Loan Application" complete, sign and date pages 5 & 8. Form 3550-1 "Authorization to Release Information" for each adult household member. Form 3550-4, "Employment & Asset Certification" for each adult household member.

INCOME:

Verification of all household income. To qualify for the program, a household's adjusted income must be within the established income limit based on size and location. Below are some examples of income that may be applicable to all household members and what should be provided to the Agency.

o Copies of the last four week's consecutive pay stubs. o Copies of recent benefit statements for regular unearned income (such as social

security, public assistance, retirement income, etc.). o Last 12 month payment history of alimony and/or child support received as provided

by the court appointed entity responsible for handling payments. If this is not available, a copy of the separation agreement or divorce decree.

For each applicant, a complete copy of their last two signed and filed Federal Income Tax Returns. IRS Form W-2, "Wage and Tax Statement," and/or IRS Form 1099-MISC, "Miscellaneous Income", must be attached. For returns mailed to the IRS, provide a copy of the signed document. For returns filed electronically, include a copy of the signature page with the Self-Select PIN, confirmation that the return was accepted, or evidence that it was filed by an authorized E-File provider.

(01-23-03) SPECIAL PN Revised (08-29-19) PN 527

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