Resolution 25-EDA-378 - 2025/09/22

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Debt -to - Income Ratio: Applicant must have the ability to repay the loan. Anapplicant who has a debt to income ratio in excess of 50%will be ineligible to receive financing. Credit Requirements: 1) All mortgage payments must be current and reflect no 30 day late payments history in the past 12 month period (without reasonable explanation) 2) ALL real estate taxes must be current. 3) No outstanding judgements or collections. 4) Bankruptcy must have been discharged for at Least 18 months prior to loan closing. 5) The redemption period on prior foreclosures must have occurred at least 18 months prior to the loan application date. 6) Generally, no more than two 60-day late payments on credit report. Any 60 day late requires a documented explanation and reasonable reasons; medical, unemployment, divorce. 7) No defaulted government loans. Multiple Loans per Property More than one loan per property is allowed, however, the outstanding balance(s) cannot exceed $15,000. Eligible Use of Funds: Loans may be used to finance most interior and exterior improvements that improve the basic livability of the property. Garages, decks, porches, retaining walls, landscaping and fences can be repaired, replaced or built as new construction. Contractors must be properly licensed and permits must be obtained when required. Ineligible Use of Funds: Payment for work initiated prior to the loan being approved and closed, unless due to emergency. Recreation or luxury projects (pools, lawn sprinkler systems, playground equipment, saunas, whirlpools, etc.), furniture, non -permanent appliances (unless part of a full kitchen remodel), and funds for working capital, debt service, homeowner labor or refinancing existing debts are NOT allowed. Bids: Only 1 bid is required. All contractors must be properly licensed. Sweat Equity / Homeowner Labor• Work maybe performed by property owners on a "sweat equity" basis. Loan funds maybe used only for the purchase of materials. Loan funds maybe used to rent tools/equipment. Post Installation Inspection: Permits must be obtained and signed off by a City inspector where required; when not required, a post installation inspection will be performed by CEE to ensure the work has been completed before any funds will be released. Loan Security All loans will be secured with a mortgage in favor of the City of Mounds View EDA. Borrower Fees: Borrower will be responsible for all applicable mortgage filing fees, title, flood certificate, credit report and any other fees associated with the loan. All fees may be financed in the loan. Underwriting Decision• Applicants must have acceptable credit history. CEE will approve or deny loans based on a credit report, income verification and other criteria as deemed necessary through CEE's underwriting guidelines. CEE's decision shall be final. Appeals can be made to the City of Mounds View. Work Completion: All work must be completed within 120 days of the loan closing. However, when warranted, CEE may authorize exceptions on a case by case basis.