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26 <br />CITY OF ST. ANTHONY <br />OWNER OCCUPIED REVOLVING LOAN PROGRAM <br />PROGRAM GUIDELINES <br />Loan Pool: The City of St. Anthony is making $90,000 available for exterior and interior home <br />improvements in St. Anthony. <br />Program Overview: The loan program is designed to supplement existing loan programs available <br />from MHFA, Ramsey and Hennepin County, private lenders and other similar sources. Eligible work <br />shall include repairs, replacement or new construction that will: <br />1. Improve the exterior and/or interior of the property. <br />2. Correct local or state code deficiencies, health and safety items. <br />3. Improve handicap accessibility. <br />4. Reduce long-term maintenance and energy costs. <br />Interest Rate: The loans will be at 4 % interest. <br />Eligible Properties: All properties must be located within the City of St. Anthony. Owner -occupied <br />single and duplex properties are eligible. Owner occupants of condominiums and townhouses will be <br />eligible for this program. <br />Loan Amount: The maximum loan amount is $10,000. A household may receive only one loan. <br />Loan Term: The maximum loan term is 7 years. Generally the term will be one year for every one <br />thousand dollars borrowed. <br />Loan Security: All loans will be secured by a mortgage in favor of the City. <br />Debt - to - Income Ratio: Applicants must have the ability to repay the loan. Applicants who have a <br />potential "debt - to - income ratio' in excess of 48% will be denied loan financing. <br />Loan -to -Value Ratio: Applicants who have a potential "loan -to -value" ratio in excess of 100 % <br />will be denied loan financing. <br />Underwriting Decision: Loans will be approved or denied by the HousingResource Center (HRC) <br />based upon review of a credit report and according to the following criteria which has been <br />established by the City of St. Anthony. <br />1. No outstanding judgements or collections. <br />2. Real estate tax payments must be current. <br />3. No defaulted government loans. <br />4. Mortgage (or contract for deed) payments must be current. <br />5. Generally, no more than two 60 -day lates on credit report. Any 90 -day late requires a document <br />explanation and acceptable reasons; medical, unemployment, divorce. <br />I <br />P:\Common\Suburban\St. Anthony\Revolving Loan\Revolving R.V. Pack\R.V.Guidelines-Revolve.doc 10/30/07 SW <br />