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Mounds View Home Improvement Loan Program Criteria Draft 4 Option 4 - Emergency Deferred Loan The purpose of this loan is to provide zero-interest deferred loans (only in emergency cases) to owner-occupied homeowners of single-family or duplex properties in Mounds View, in addition to manufactured homes. Emergency Deferred Loan funds may be used for repairs to a Mounds View property that was damaged as a result of events beyond the borrower's control or as necessitated by a system or a structural failure. Loan Amount Up to $7,000 secured by a note & mortgage Interest Rate If the loan is paid in full within 30 days of the date the loan becomes due and payable, the interest rate is 0%. If the loan is not repaid within 30 days of the date it becomes due and payable, the interest rate is the lesser of 18% per annum or the highest interest rate allowed by law. Loan Term The loan is due on sale, transfer of title, when the primary mortgage is paid off, or when the property ceases to be the owner's primary place of residence. Income Limit The applicant's household gross income shall not exceed 50% of the area median income as it appears on the chart annually published by_ the U. S. Department of Housing and Urban Development. Asset Limit The maximum -'`gross assets of the borrower, excluding the residential property to be improved and a retirement account that 110 is or was subject to penalty for early withdrawals before age 59 %2, shall not exceed $25,000. Gross assets will generally be defined as the current market value of an item listed minus existing indebtedness on that item. Loan to Value 110% Debt to Income 50% Eligible Properties Eligbile properties are owner-occupied single-family or duplex properties in Mounds View. This includes manufactured homes. Eligible Repairs • Failure of the heating, electrical, ventilation, or plumbing/septic system; • Roof leaks that have led to significant secondary damage to the home's interior; • A structural failure of the foundation, walls, or roof of the home that could cause collapse; • An Environmental Intervention Blood Lead Level (EIBLL) of a household resident; or • Other emergency conditions that could cause the home to be or become uninhabitable will be considered by on a case-by- case basis Contractor Bid Applicants must provide the Housing Resource Center's Construction Manager with one bid for each improvement project. • All contractors must be licensed and insured. Page 5 of 5