Benefits of the Section 504 repair loan program are:

• Income limits apply.

• The Section 504 Repair Loan interest rate is 1% and the maximum loan amount is $40,000 (maximum Section 504 indebtedness is $40,000). 

  • Funds can be used to modernize a home through the loan program.

• Closing agents are not required unless the total outstanding balance on Section 504 loans is greater than $25,000!  A mortgage is required when the total Section 504 loan indebtedness is $7,500 or more.

• Work is completed by a licensed contractor.

• Adequate value is required!

• Additional information can be found on the Minnesota Rural Development website.