CLEARBORROW · PUBLISHED NOVEMBER 12, 2026

Home repair loans: USDA 504, personal loans and other options

By Petrov Andriy, founder and editor · AI-assisted desk research

QUICK ANSWER

If you are a very-low-income homeowner in an eligible rural area, check USDA’s Section 504 program first: loans of up to $40,000 at a fixed 1% for 20 years, and grants of up to $10,000 for homeowners 62 or older to remove health and safety hazards. Otherwise compare personal loans and contractor financing on total cost, and get written estimates before you borrow.

YOUR NEXT STEP

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Loan matching

50KLoans

Published amount: $500–$50,000
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PersonalLoans

Published amount: $250–$35,000
Cost: 5.99%–35.89% generally advertised

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On this page

USDA Section 504 home repair
Other ways to pay
What $8,000 of repairs costs to borrow
Before you borrow
Questions
Sources and limits

USDA Section 504 home repair

	Loan	Grant
Maximum	$40,000	$10,000 ($15,000 in some disaster areas)
Rate and term	1% fixed, 20 years	Not repaid
Use	Repair, improve or modernize, or remove hazards	Remove health and safety hazards
Who	Very-low-income homeowners in eligible rural areas	Same, and age 62 or older

Loans and grants can be combined up to $50,000 (USDA ↗; USDA ↗; USDA ↗). Approval times depend on funding in your area; contact your local USDA home loan specialist.

Other ways to pay

Option	Notes
Personal installment loan	No collateral; compare APR and origination fee
Contractor financing	Check for deferred interest and the total cost
Home equity loan or line of credit	Uses your home as collateral; usually lower rates

What $8,000 of repairs costs to borrow

Our example	Monthly payment	Interest
USDA 504 at 1%, 20 years	$36.79	$829.97
Personal loan at 15%, 5 years	$190.32	$3,419.17
Personal loan at 30%, 5 years	$258.83	$7,529.63

Our arithmetic.

Before you borrow

Get two or three written estimates.
Confirm the contractor’s license with your state or city.
Never pay most of the price before work starts.

Questions

Who qualifies for USDA 504?

Very-low-income homeowners in USDA-eligible rural areas; grants also require age 62 or older. Check your address with USDA.

Can I combine a 504 loan and grant?

Yes, up to $50,000 in total assistance, according to USDA.

Is a personal loan better than a home equity loan for repairs?

A personal loan does not put your home at risk but usually costs more. Compare total repayment.

Sources and limits

Sources checked November 12, 2026. This is general information, not legal, tax or benefits advice; rules differ by state. Worked examples are our own arithmetic, not offers. How we use sources.