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MHFA Interest Subsidy Loan Program <br /> Page 2 <br /> 5. Borrower's must provide proof of income, property tax statement, bid for work, and <br /> contractor warranty. <br /> 6. The property owner has 9 months from the date of closing to complete the improvement(s). <br /> 7. Loan proceeds will be disbursed to the borrower. <br /> 8. Loan proceeds over$2,500 may be secured with a mortgage. <br /> 9. Lenders will offer a remodeling counselor to property owners desiring assistance in <br /> evaluating and prioritizing improvements to their property. Remodeling counselors will also <br /> be available to assist property owners in evaluating bids. Fees for these services will be paid <br /> by the City of Mounds View. <br /> 10. Sweat equity projects are permitted. However, labor is not eligible for compensation. Sweat <br /> equity refers to an arrangement where the property owner(not a contractor)performs the <br /> home improvement. <br /> 11. Funds must first be used to abate any outstanding orders or code violations from the City of <br /> Mounds View. Use of funds is limited to eligible improvements allowable under MHFA's <br /> Fix-up Fund Loan Programs specified as Eligibility/Ineligible Requirements of this policy. <br /> ELIGIBILITY REQUIREMENTS <br /> Owner-Occupied/Permanent Residence <br /> The property shall be occupied year round as a permanent residence and shall be occupied by the <br /> borrower as his or her principle place of residence within 60 days of the date of Loan closing. A <br /> residence is not eligible if now used, or can reasonably be expected to be used, as a recreational <br /> home. <br /> Business Use of Home <br /> If 49% or less of the square footage of a Property, including any basement areas, is now regularly <br /> and exclusively used in trade or business (or can reasonably be expected to be so used)then the <br /> property is eligible. Improvements must be made to the residential portion of the property only. <br /> Completed Property <br /> Properties must be completed. A completed property is either: <br /> 1. A property that has been occupied as a year-round permanent residence for at least <br /> five continuous years; or <br /> 2. A single-unit Property that has been occupied for at least 90 days by the Borrower or <br /> previous tenants, and had in place all of the following permanent items at least 90 <br /> days prior to the date of Credit Application: <br /> a. Foundation <br /> b. Completed utility connections, including water, electric and sanitary <br /> facilities. <br /> c. Whole house heating system. <br /> d. Electrical wiring to all rooms of the house. <br /> e. Finished exterior including, but not limited to, siding, windows, doors, <br />