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Mounds View Home Improvement Loan Program Criteria <br />Draft 6 <br /> <br />Page 2 of 8 <br />Option 2 – General Home Repair Loan <br />The purpose of this loan is to provide loans for general home repairs to owner-occupied <br />single-family or duplex homes in Mounds View. <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br />Loan Amount From $1,000 to $15,000 <br />Loan Security All loans will be secured by a mortgage in favor of the City. The <br />loan may be secured in a subordinate lien position behind other <br />loans. <br />Interest Rate The interest rate will be fixed at 3%, and the monthly payment will <br />be fixed. <br />Loan Term Maximum loan term is 15 years. Loan is due upon sale, transfer <br />of title, refinance or if the property ceases to be owner-occupied. <br />Income Limit The applicant’s household gross income shall not exceed 80% of <br />the area median income (see chart on page 5). <br />Loan to Value 90% <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.