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1. No outstanding judgements or collections. 2. Real estate tax payments must be current. 3. No defaulted government loans. 4. Mortgage (or contract for deed) payments must be current. 5. Generally, no more than two 60 -day lates on credit report. Any 90 -day late requires a document explanation and acceptable reasons; medical, unemployment, divorce. Underwriting Process: GMHC will have the final determination on applicant's eligibility. Elliclible Improvements: Interior and exterior repairs and improvements are all eligible. Decks, porches, retaining walls, skylights, garages, landscaping, and fences can be repaired, replaced or built as new construction. Contractors contracting for the work must be properly licensed by the City of St. Anthony. Permits must be obtained when required by ordinance. Ineligible Improvements: This includes recreational or luxury improvements, working capital, payment for owner's labor, debt service or refinancing existing debts and other work items determined by HRC to be ineligible. Work by Owner: Work can be performed on a "sweat equity" basis. Loan funds are for materials only, not for labor or tools. HRC will determine if the owner has the ability to properly complete the work within the program time requirement. Material must be purchased and installed prior to the disbursement of the loan proceeds. Under unusual circumstances, a partial advance will be provided to the borrower. In either situation, a two-party check will be issued payable to both the borrower and the materials provider. When applicable, a St. Anthony Building Department permit must be obtained by the borrower. Loan Closing: Loans are closed by GMHC. At closing the borrower receives: 1) Amortization Schedule that lists the monthly payments from closing until the date the loan is paid off. The Schedule shows the payment date, the payment amount, the interest rate, the amount of interest and principal and the remaining balance of the loan. 2) Loan Servicer Letter that provides: a) contact information for Community Reinvestment Fund (CRF) the loan servicing agency b) loan amount c) closing date d) monthly payment amount e) date first payment is due 0 form for automatic withdrawal of monthly payment (optional). Loan Servicing: Following the loan closing the mortgage is filed at the County and loan documents are sent to CRF. CRF sends the borrower a "Welcome Letter" and payment coupons. OTHER GENERAL CONDITIONS AND PROCEDURES: Rehabilitation Consulting: The HRC construction manager will be available to borrowers to advise them about proposed projects prior to obtaining bids and will review bids for reasonableness. Two bids must be obtained for all projects for which at least $5,000 of funds will be spent. CAIDocumcnts and 5ep6ngs\barb.suciu\1.oea1 5ettingsUemporary Intemet l-iles\Coilent.Outlook\F4M000R9\StAnthonyRevolvingGuideGnesE,'inal.doc Rev. 3- 27-12