Laserfiche WebLink
Mounds View Home Improvement Loan Program Criteria <br />Draft 5 <br /> <br />Page 4 of 8 <br />Option 4 − Emergency Deferred Loan <br />The purpose of this loan is to provide financial assistance to owner-occupied single- <br />family, duplex and manufactured home properties that are in hardship financial <br />circumstances, are unable to get money from other sources and have a serious health <br />and safety home repair situation that poses a threat to residents if not addressed <br />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. <br />Interest Rate The interest rate will be 0% deferred. Loan is due upon sale, <br />transfer of title, refinance or if the property ceases to be owner- <br />occupied. <br />Loan Term 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 The applicant’s household gross income shall not exceed 50% of <br />the area median income (see chart on page 6). <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. 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 100% <br />Debt to Income 50% <br />Eligible Properties Eligbile properties are owner-occupied single-family or duplex <br />properties in Mounds View. This includes manufactured homes. <br />Eligible Repairs  Failure of the heating, electrical, ventilation, or plumbing/septic <br />system; <br /> Roof leaks that have led to significant secondary damage to the <br />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 Applicants must provide the Housing Resource Center’s <br />Construction Manager with one bid for each improvement project <br />in an emergency situation if the construction manager deems the <br />bid reasonable. All contractors must be licensed and insured.