Low-Income Home Repair Loans and Grants in Arkansas
For information on low-income home repair loans and grants in Arkansas, contact Rural Development in your county. As part of the U.S. Department of Agriculture, Rural Development offers home repair loans and grants to single-family low-income homeowners. Governed by the Housing Act of 1949, the Section 504 Home Repair Program issues loans to qualifying homeowners. Particularly, these loans apply to homeowners who want to repair or improve their homes. Additionally, homeowners can improve the conditions to make their homes safer and more sanitary. The program also issues grants to elderly homeowners who are in need of improving health and safety hazards in the home.
Communities Thrive
In the long run, keeping people in safe and sanitary homes helps our communities thrive. An entire community is strengthened when citizens can support their investments in a home. Unquestionably, this provides a viable platform for businesses to thrive allowing culture to flourish.
Section 504
According to the Housing Act of 1949, Section 504 states:
“Loan funds may be used to make general repairs and improvements to properties or to remove health and safety hazards, as long as the dwelling remains modest in size and design.
Grant funds may be used only to pay costs for repairs and improvements that will remove identified health and safety hazards or to repair or remodel dwellings to make them accessible and useable for household members with disabilities. Unused grant funds must be returned to the Rural Housing Service (RHS).”
In order to qualify for low-income loans and grants, you must be the owner of a single-family home. Additionally, you must be living on the property. The homeowner must be unable to obtain affordable credit elsewhere. A “very low” income limit as determined by county limits is also a requirement. Those who wish to apply for a Rural Development grant must be at least 62 years of age and have a repair loan that cannot be paid.
Homeowners can qualify for loans up to $40,000 in the Section 504 Program. The term limit for Section 504 loans is currently 20 years with a fixed 1% interest rate. Loans exceeding $25,000 must have full title service.
Grants
Grants are provided for the elderly up to a lifetime limit of $10,000, while loans and grants can be combined for a total of $50,000 to qualifying homeowners. Specifically, if applicants cannot pay the full loan, a grant may be offered to the applicant. Grants must be repaid if the property is sold in less than 3 years.
For more information on the Section 504 Program and other Rural Development initiatives, visit the Rural Development website. For example, there is further information on repairing an existing home, purchasing or building a new home with no money down and also refinancing a mortgage.
Information on programs that assist non-profits who help individuals and families find homes or repair homes can also be found on the Rural Development website.
