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Mounds View Home Improvement Loan Program Criteria <br />Draft 6 <br /> <br />Page 3 of 8 <br />Option 3 − Code Enforcement Loan <br />The purpose of this loan is to provide loans to owner-occupied single-family or duplex <br />properties in Mounds View that have been required by the City of Mounds View to bring <br />their properties into compliance with the City Code. <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 $7,000 <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, <br />transfer of title, refinance or if the property ceases to be owner- <br />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 100% <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 Eligible repairs are those that Mounds View’s Code Enforcement <br />Officer have written to the property owner as structural code <br />citations. Citations for “junk” or debris removal are ineligible. <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 />Other Code Enforcement Loan applicants may also apply for the General <br />Home Repair Loan not to exceed a total loan am amount of <br />$15,000.