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Mounds View Home Improvement Loan Program Criteria <br />Draft 4 <br />Option 3 ® Code Enforcement Deferred Loan <br />The purpose of this loan is to provide zero -interest deferred loans to owner -occupied <br />single-family or duplex properties in Mounds View that have been required by the City of <br />Mounds View to bring their properties into compliance with the City Code. <br />Loan Amount <br />Up to $7,000 secured by a note & mortgage <br />Interest Rate <br />If the loan is paid in full within 30 daysof 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 <br />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 <br />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 <br />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 '/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 <br />110% <br />Debt to Income <br />50% <br />Eligible Properties <br />Eligible properties are owner -occupied single-family or duplex <br />properties in Mounds View. <br />Eligible Repairs <br />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 <br />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 <br />Code Enforcement Deferred Loan applicants may also apply for <br />the General Home Repair Deferred Loan not to exceed a total <br />loan am amount of $15,000. <br />Page 4 of 5 <br />