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Economic Development Authority (EDA) <br /> <br />General Home Repair Improvement Loan Criteria <br />EDA Approved November 22, 2010 <br />Amended December 12, 2011 <br />Amended June 11, 2012 <br />Reviewed October 1, 2012 <br /> <br />The purpose of this loan is to provide loans for general home improvements and repairs to <br />owner-occupied single-family or duplex homes in Mounds View. <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br />Loan Amount From $1,000 to $10,000 <br />Loan Security All loans will be secured by a mortgage in favor of the City. The loan <br />may be secured in a subordinate lien position behind the borrower’s <br />existing prime/A-rated fixed rate mortgage. <br />Interest Rate The interest rate is fixed at 3%. The monthly payment is fixed. <br />Loan Term The maximum loan term is 10 years, however, the loan shall become due <br />upon sale, transfer of title or refinancing of the property, whichever <br />occurs first. <br />Income Limit The applicant’s total gross annual household income shall not exceed <br />80% of the current year area median household income as defined by <br />HUD per household size, as follows (FY 2012): <br /> Household Size Income Limit <br /> 1 $45,500 <br /> 2 $52,000 <br /> 3 $58,500 <br /> 4 $65,000 <br /> 5 $70,200 <br /> 6 $75,400 <br /> 7 $80,600 <br /> 8 $85,800 <br /> <br />Loan to Value The borrower’s combined mortgage debt including the Mounds View loan <br />cannot exceed 110% of the property value based on the taxable market <br />value as determined by Ramsey County for the current year. Applicants <br />may also submit a third party appraisal that has been completed within <br />the last 6 months. Such an appraisal is to be obtained by the applicant at <br />their expense. <br />Debt to Income 50% <br />Eligible <br />Properties <br />Mounds View owner-occupied single-family & duplex properties