The fact is: things break. For low-income families, expensive repairs can be devastating in an already tense financial situation. The good news is, through a federal program known as the Section 504 Home Repair Program, certain members of our community can receive grants or low-interest loans to provide much-needed funds to repair or improve and update their homes including HVAC, furnace, and air conditioning repair.
According to the USDA, residents of single-family homes in Minnesota may be eligible for the program if they meet the following criteria:
- They’re the homeowner and a current occupant of the home
- They’re unable to obtain affordable loans with reasonable rates from traditional sources, including banks and other lending institutions
- Have a combined family income that is below 50% of the area’s median income
- They’re 62 years old or older and unable to repay traditional financing termsThe home must also be located in a qualified area.
To check if your community is included, visit the USDA’s program website for Minnesota.
How much can you get?
The maximum amount of a loan is $20,000 and the maximum grant awarded is $7,500. In some cases, a loan and grant can be combined for $27,500 total assistance.
What are the terms?
Loans must be repaid over a 20-year term at a fixed rate of just 1%. For loans over $7,500, they may hold the title of your home until the loan is repaid in full. Grants are generally not subject to repayment. However, if the property is put up for sale within three years of the grant’s issuance, repayment will be required. If it is determined that applicants can pay some part, but not the total, they may be eligible for a combination of a loan and a grant.
Can I choose the HVAC repair company if I receive a loan or a grant?
There are no limitations on who you may hire to handle your HVAC repairs or HVAC upgrade. However, it is always important when you are making any major home improvement like furnace repair or air conditioning repair to make sure you are hiring well-trained licensed heating and cooling professionals to do the job, such as the experts here at Metro Heating and Cooling in Minneapolis. Call Us today on (651) 294-7798