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<br /> <br /> <br />Page 2 of 6 <br />Option 2 – General Home Repair Loan <br />The purpose of this loan is to provide loans for general home repairs to owner-occupied single- <br />family or duplex homes in Mounds View. <br /> <br />Loan Amount From $1,000 to $15,000 <br />Loan Security All loans will be secured by a mortgage in favor of the City. The loan may be <br />secured in a subordinate lien position behind the borrower’s existing prime/A- <br />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 15 years. The loan is due upon sale, transfer of <br />title, refinance or if the property ceases to be owner-occupied. <br />Income Limit The applicant’s total gross annual household income shall not exceed 80% of <br />the current area median household income as defined by HUD per household <br />size, as follows: Household Size Income Limit <br />1 $45,100 <br />2 $51,550 <br />3 $58,000 <br />4 $64,400 <br />5 $69,600 <br />6 $74,750 <br />7 $79,900 <br />8 $85,050 <br /> <br />Loan to Value The borrower’s combined mortgage debt including the Mounds View loan <br />cannot exceed 90% of the property value based on the taxable market value <br />as determined by Ramsey County for the current year. Applicants may also <br />submit a third party appraisal that has been completed within the last 6 <br />months. Such an appraisal is to be obtained by the applicant at their <br />expense. <br />Debt to Income 50% <br />Eligible Properties Mounds View owner-occupied single-family & duplex properties <br />Eligible Repairs Exterior repairs: <br /> Exterior painting <br /> Rafters, soffit and fascia repair <br /> Window glass and screens <br /> Railings and stairs <br /> Landings and porches <br />Interior repairs: <br /> Energy efficiency improvements <br /> Accessibility improvements for people with disabilities <br /> Failure of the heating, electrical, ventilation, or plumbing/septic system <br /> Roof leaks that have led to significant damage to the interior <br /> A structural failure of the foundation, walls, or roof that could cause collapse; <br /> Removing lead paint or the cause of a confirmed concentration of lead <br />in the resident’s whole blood (Environmental Intervention Blood Lead Level) <br />Ineligible <br />Improvements <br /> Exterior repairs to condos and townhomes <br /> New construction (additions) <br /> Luxury items, such as swimming pools <br /> Working capital, debt service or refinancing of existing debts <br />Contractor Bids Applicants must provide the Housing Resource Center’s Construction <br />Manager with two bids for each improvement project. All contractors must be <br />licensed and insured.