The 504 Home Improvement Loan program allows very low-income homeowners in rural areas to borrow money for critical home repairs and improvements. It is not a grant; people awarded this loan will still have to pay it back, in very fair terms, at 1% interest for 20 years. Payments in most cases are $5.00 per $1,000.00 borrowed, per month. Special terms are available for those rural citizens aged 62 years or older, and who fall under the qualification of very low-income.
To Qualify for this program you must:
- Own and occupy the home (if it’s a mobile home, you must own the mobile home AND the land it’s on)
- Home must be located in rural area (as designated by USDA)
- Have a very-low household income (see area limits on the back of this letter)
- Be a US citizen or meet eligible non-citizen requirements
May, 2014: Recent congressional action and adjustments in eligibility have qualified all of Morristown and Hamblen County for two more rural development loans that had previously been unavailable to those citizens.