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Economic Development Authority (EDA) <br /> <br />Emergency Deferred Loan Criteria <br />EDA Approved November 22, 2010 <br /> <br />The purpose of this loan is to provide financial assistance to owner-occupied single-family, <br />duplex and manufactured home properties that are in hardship financial circumstances, are <br />unable to get money from other sources and have a serious health and safety home repair <br />situation that poses a threat to residents if not addressed immediately. <br /> <br /> <br /> <br /> <br />Loan Amount Up 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. This criteria does not apply to manufactured home owners. <br />Interest Rate The interest rate will be 0% deferred. <br />Loan Term The loan shall become due upon sale, transfer of title or <br />refinancing of the property, whichever occurs first. <br />Income Limit The applicant’s total gross annual household income shall not <br />exceed 50% of the current year area median household income as <br />defined by HUD per household size, as follows (FY 2011): <br /> Household Size Income Limit <br />1 $28,950 <br />2 $33,100 <br />3 $37,250 <br />4 $41,350 <br />5 $44,700 <br />6 $48,000 <br />7 $51,300 <br /> 8 $54,600 <br />Loan to Value The borrower’s combined mortgage debt including the Mounds <br />View loan cannot exceed 100% of the property value based on the <br />taxable market value as determined by Ramsey County for the <br />current year. Applicants may also submit a third party appraisal <br />that has been completed within the last 6 months. Such an <br />appraisal is to be obtained by the applicant at their expense. <br />Asset Limit 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 ½, <br />shall not exceed $25,000.