USDA 504 Grants
The United States Department of Agriculture offers grants through its 504 program to rural property owners. The grants are also available to residents of mobile homes and other vehicles that can be used as residences. Property owners who do not qualify to receive a grant can also get a loan through the 504 program. Because of the income and age restriction for these grants, most recipients are retired.
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Loan Repayment
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A resident must not be able to pay back a loan to qualify for the grant program. According to the Department of Agriculture, the resident must be at least 62 years old to receive a grant. The grant applicant cannot have more than $20,000 in total assets, not including assets that are part of a retirement plan. The USDA calculates the resident's ability to repay a loan before offering a grant. The USDA may offer both a loan and a grant if the resident can pay some of the improvement costs.
Benefits
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The purpose of the 504 grant is to make the property safe to live in. The grant can be used to repair damage to the home, to protect it from harsh weather, or to remove obstacles that are dangerous to the elderly resident. The grant funds can be used to add improvements that increase the value of the property. The USDA requires the improvements to be modest, so the grant recipient may not purchase luxury items with the grant funds, and there cannot be a swimming pool on the property.
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Limit
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As of 2010, the 504 grant program awards a maximum of $7,500 during the lifetime of the resident. A resident can receive several grants through the program for less than this amount, as long as the total value does not exceed $7,500. The USDA will not award a grant if it costs more than this amount to make the property safe for the resident to live in. According to the Department of Housing and Urban Development, this rule applies to major health hazards, so an applicant can still receive a grant if minor health hazards will still be present.
Restrictions
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The grant money can only be used to make structural improvements to the building or mobile home. According to the USDA, the resident may not purchase appliances, such as refrigerators, microwaves, washing machines, or ovens with the grant. The resident may not use the grant to build a new house on the property or build a new deck or driveway. According to the state of Connecticut, the resident must also live in a town that qualifies for the 504 grant program.
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