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Owning a home is a significant milestone for many West Virginians, but for some, the cost of maintaining and repairing that home can be overwhelming. Fortunately, the USDA's Single Family Housing Repair Loans & Grants Program, commonly known as the Section 504 Home Repair Program, offers a lifeline to very-low-income homeowners in rural areas of West Virginia. This program provides much-needed financial assistance to repair, improve, or modernize homes, ensuring they remain safe and livable.

What is the Section 504 Home Repair Program?

The Section 504 Home Repair Program offers two types of assistance:

1. Loans for very-low-income homeowners to repair, improve, or modernize their homes.
2. Grants for elderly very-low-income homeowners to remove health and safety hazards from their homes.

This program aims to ensure that homes in rural areas remain safe, healthy, and structurally sound, enabling families to continue living in their communities.

Who Can Apply?

To qualify for the Section 504 Home Repair Program, applicants must meet the following criteria:

• Homeownership: The applicant must be the homeowner and occupy the house.
• Income: The household income must not exceed the very low-income limit set by the county.
• Credit Access: The applicant must be unable to obtain affordable credit elsewhere.
• Age: For grant eligibility, the homeowner must be age 62 or older.

This program is designed to assist those who may not have other options, making it a critical resource for some of the most vulnerable residents in West Virginia.

What is an Eligible Rural Area?

The Section 504 program is available to homeowners in eligible rural areas, as defined by the USDA. To determine if your home is in an eligible area, you can use the USDA Eligibility Site. By entering a specific address or searching the map, homeowners can quickly find out if they qualify based on their location.

How Can the Funds Be Used?

The funds provided through the Section 504 Home Repair Program can be used in several ways:

• Loans can be used to repair, improve, or modernize homes, addressing issues such as structural damage, outdated systems, or accessibility improvements.
• Grants are specifically designated for removing health and safety hazards, such as repairing faulty wiring, fixing leaks, or addressing other critical issues that could endanger the occupants.

This focus on safety and modernization ensures that homes remain secure and comfortable for their residents.

Financial Details: Loans and Grants

The financial support offered through this program is substantial, with the following limits:

• Maximum Loan: Up to $40,000
• Maximum Grant: Up to $10,000
• Combined Assistance: Loans and grants can be combined for up to $50,000 in total assistance.

Loan Terms:

• Loans are offered at a fixed 1% interest rate over a 20-year term.
• Full title service is required if the total outstanding balance exceeds $25,000.

Grant Terms:

• Grants have a lifetime limit of $10,000.
• If the property is sold within three years, the grant must be repaid.

These favorable terms make it easier for homeowners to manage the costs of necessary repairs without taking on unmanageable debt.

Application Process and Timing

Applications for the Section 504 Home Repair Program are accepted year-round through local USDA Rural Development (RD) offices. The approval process can vary depending on funding availability, so it’s recommended to contact a USDA home loan specialist in your area for guidance and to start the application process.

Why This Program Matters

The USDA Rural Development initiative, including the Section 504 Home Repair Program, is about more than just fixing homes—it's about strengthening communities. By helping homeowners stay in their homes and maintain them, the program fosters stability, encourages savings, and supports local businesses. Homeownership is a key component of economic health, and by keeping homes safe and sound, the Section 504 program contributes to the overall well-being of West Virginia's rural communities.

For more detailed information or to begin the application process, homeowners should contact their local USDA home loan specialist. It’s important to consult the program's guidelines as rules and funding availability may change.

By utilizing programs like Section 504, West Virginians can ensure that their homes remain a source of pride, safety, and comfort for years to come.