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<br /> <br /> <br />Page 4 of 6 <br /> <br /> <br />Option 4 − Emergency Deferred Loan <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 />Loan Amount Up to $7,000 <br />Loan Security All loans will be secured by a mortgage in favor of the City. The loan may <br />be secured in a subordinate lien position behind other loans. This criteria <br />does not apply to mobile home owners. <br />Interest Rate The interest rate will be 0% deferred. Loan is due upon sale, transfer of <br />title, refinance or if the property ceases to be owner-occupied. <br />Loan Term The loan is due on sale, transfer of title, when the primary mortgage is paid <br />off, or when the property ceases to be the owner’s primary place of <br />residence. <br />Income Limit The applicant’s total gross annual household income shall not exceed 50% <br />of the current area median household income as defined by HUD per <br />household size, as follows: <br /> Household Size Income Limit <br />1 $29,400 <br />2 $33,600 <br />3 $37,800 <br />4 $42,000 <br />5 $45,400 <br />6 $48,750 <br />7 $52,100 <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 />Asset Limit The maximum gross assets of the borrower, excluding the residential <br />property to be improved and a retirement account that is or was subject to <br />penalty for early withdrawals before age 59 ½, shall not exceed $25,000. <br />Debt to Income 50% <br />Eligible Properties Mounds View owner-occupied single-family, duplex or manufactured home <br />properties <br />Eligible Improvements  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 <br />collapse; <br /> Removing lead paint or the cause of a confirmed concentration of lead in <br />the resident’s whole blood (Environmental Intervention Blood Lead Level) <br /> Other emergency conditions that could cause the home to be or become <br />uninhabitable will be considered by on a case-by-case basis <br />Contractor Bid Applicants must provide the Housing Resource Center’s Construction <br />Manager with one bid for each improvement project in an emergency <br />situation if the construction manager deems the bid reasonable. All <br />contractors must be licensed and insured.