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Mounds View Home Improvement Loan Program Criteria <br />Draft 4 <br />Option 4 — Emergency Deferred Loan <br />The purpose of this loan is to provide zero -interest deferred loans (only in emergency <br />cases) to owner -occupied homeowners of single-family or duplex properties in Mounds <br />View, in addition to manufactured homes. Emergency Deferred Loan funds may be <br />used for repairs to a Mounds View property that was damaged as a result of events <br />beyond the borrower's control or as necessitated by a system or a structural failure. <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 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 <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 50% 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 Y2, <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 />indebtednesson that item. <br />Loan to Value <br />110% <br />Debt to Income <br />50% <br />Eligible Properties <br />Eligbile properties are owner -occupied single-family or duplex <br />properties in Mounds View. This includes manufactured homes. <br />Eligible Repairs <br />® Failure of the heating, electrical, ventilation, or plumbing/septic <br />system; <br />® Roof leaks that have led to significant secondary damage to <br />the home's interior; <br />® A structural failure of the foundation, walls, or roof of the home <br />that could cause collapse; <br />® An Environmental Intervention Blood Lead Level (EIBLL) of a <br />household resident; or <br />® Other emergency conditions that could cause the home to be <br />or become uninhabitable will be considered by on a case-by- <br />case basis <br />Contractor Bid <br />Applicants must provide the Housing Resource Center's <br />Construction Manager with one bid for each improvement project. <br />All contractors must be licensed and insured. <br />Page 5 of 5 <br />