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Mounds View Home Improvement Loan Program Criteria <br /> Draft 4 <br /> Option 2 — General Home Repair Deferred Loan <br /> p p <br /> The purpose of this loan is to provide zero-interest deferred loans for general home <br /> repairs to owner-occupied single-family or duplex homes in Mounds View. <br /> Loan Amount Up to $15,000 secured by a note & mortgage <br /> Interest Rate If the loan is paid in full within 30 days of the date the loan <br /> becomes due and payable, the interest rate is 0%. If the loan is <br /> not repaid within 30 days of the date it becomes due and payable, <br /> the interest rate is the lesser of 18% per annum or the highest <br /> interest rate allowed by law. <br /> Loan Term The loan is due on sale, transfer of title, when the primary <br /> mortgage is paid off, or when the property ceases to be the <br /> owner's primary place of residence. <br /> Income Limit The applicant's household gross income shall not exceed 80% of <br /> the area median income as it appears on the chart annually <br /> published by the U. S. Department of Housing and Urban <br /> Development. <br /> Asset Limit The maximum gross assets of the borrower, excluding the <br /> residential property to be improved and a retirement account that <br /> is or was subject to penalty for early withdrawals before age 59 1/2, <br /> shall not exceed $25,000. Gross assets will generally be defined <br /> as the current market value of an item listed minus existing <br /> indebtedness on that item. <br /> Loan to Value 110% <br /> Debt to Income 50% <br /> Eligible Properties Eligible properties are owner-occupied single-family or duplex <br /> properties in Mounds View. <br /> Eligible Repairs These loans can be used to finance exterior and/or interior <br /> rehabilitation of a home and/or an existing garage. Eligible <br /> permanent improvements include items to improve energy <br /> efficiency or basic livability of the property, including accessibility <br /> improvements for people with disabilities. New construction and <br /> luxury,items, such as a swimming pool, are not allowed. <br /> Contractor Bids Applicants must provide the Housing Resource Center's <br /> Construction Manager with two bids for each improvement project. <br /> All contractors must be licensed and insured. <br /> • <br /> Page 3 of 5 <br />