Loan Terms:

  Maximum Loan Amounts

The following maximum loan amounts are maximum average loan amounts.  Higher loan amounts may be approved in certain circumstances where there is a great threat to health and safety.  For rental properties, these maximum loan amounts apply to each rental unit.

  Stick-framed houses:  $19,000.00

  Mobile homes:  $14,000.00

  Repayment Terms:

  Owner-Occupied Projects:  Loans are zero-interest, deferred payment with no payments due until the home is sold, or the title is transferred, or if there is a default in the loan agreement.  When the home is sold or the title is transferred, the loan is repaid in full.  

  Rental Projects:  Loans are amortized with an interest rate of five percent and a maximum term of 20 years.  Minimum monthly payment of $75.00 is required, however higher payments may be required to amortize the loan within the maximum 20 year term.  For the life of the loan, owners are required to rent or lease the property to low- to moderate-income tenants.  See income eligibility for income requirements. 

  Loan Requirements:  

  For the duration of the loan, owners are required to maintain their property to acceptable community standards.

  Prior to the approval of any loan, all junk, trash, or other items creating blight must be removed from the outside of the premises.

  Owners are required to maintain property insurance for the improved value of the property until the loan is repaid.

  Improvements to the outside of the property will be emphasized to provide an improved visual impact on the neighborhood.  

  Other Program Requirements:

For more complete details of the rehabilitation loans, download the Owners Agreement to Participate for owner-occupied or rental projects.  For program participants who have already received a housing rehab loan and are thinking of refinancing, download the Subordination Guidelines for further information (if your current mortgage is in first position, you will need to have the rehab loan subordinated in order for your new mortgage to be in a first-lien position as well).