EDA Resolution 10-EDA-264 - Laserfiche WebLink

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10 -EDA -264 Exhibit A MOUES VIA Economic Development Authority (EDA) Emergency Deferred Loan Criteria EDA Approved November 22, 2010 The purpose of this loan is to provide financial assistance to owner occupied single family, duplex and manufactured home properties that are in hardship financial circumstances, are unable to get money from other sources and have a serious health and safety home repair situation that poses a threat to residents if not addressed immediately. Loan Amount Up to $7,000 Loan Security All loans will be secured by a mortgage in favor of the City. The loan may be secured in a subordinate lien position behind other loans. This criteria does not apply to manufactured home owners. Interest Rate The interest rate will be 0% deferred. Loan Term The loan shall become due upon sale, transfer of title or refinancing of the property, whichever occurs first. Income Limit The applicant's total gross annual household income shall not exceed 50% of the current year area median household income as defined by HUD per household size, as follows: Household Size Income Limit 1 $29,400 2 $33,600 3 $37,800 4 $42,000 5 $45,400 6 $48,750 7 $52,100 Loan to Value The borrower's combined mortgage debt including the Mounds View loan cannot exceed 100% of the property value based on the taxable market value as determined by Ramsey County for the current year. Applicants may also submit a third party appraisal that has been completed within the last 6 months. Such an appraisal is to be obtained by the applicant at their expense. Asset Limit The maximum gross assets of the borrower, excluding the residential property to be improved and a retirement account that is or was subject to penalty for early withdrawals before age 59 Y2, shall not exceed $25,000.