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SFH Direct Loan and Grant Programs

March 8, 2024

Section 504 Home Repair Loan and Grant Program – Important Updates

With the posting of PN 607 dated March 8, 2024, changes were made to Handbook-1-3550, Chapter 12 to update and improve the Section 504 Home Repair Loan and Grant Program.  With the PN, a new program intake form was also released. 

Changes include but are not limited to:

• Expanding the eligible purposes to include essential equipment, storm shelters, and the initial escrow deposit.  
• Adding a prequalification process that includes Form RD 3550-35, Section 504 Home Repair Loan and Grant Program Intake Form. 
• Clarifying further when a TMCR is needed and not needed. 
• Stating that home equity should not be included in the applicant’s asset calculation or test for other credit. 
• Stating that trusts, partnerships, and other entities are not an eligible applicant, borrower, or owner.
• Providing guidance on requesting an individual exception request for a special needs trust.   
• Clarifying further that an appraisal is not required for unsecured loans. 
• Stating that a change in ownership resets a dwelling’s grant eligibility provided the transfer was not to another household member. 
• Updating Attachment 12-A and Attachment 12-C (see PN for details).  

Program Information

Single Family Housing Direct Loans

Single Family Housing Repair Loans and Grants

Mutual Self Help Housing Technical Assistance Grants

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