Minneapolis launches rehab loan program

The city is urging residents of neighborhoods hit hard by foreclosure to apply for loans of up to $20,000 at zero-percent interest through its new Rehab Support pilot program, which provides $750,000 in financing to homeowners and buyers to complete improvements and potentially increase their home’s market value. Homeowners and buyers can apply for the program starting today. According to the city:

“Funding the City received from the Minnesota Housing Finance Agency will be matched dollar for dollar by the homeowner from any other source they choose; around 50 loans are available.”

The program is available to qualified homeowners and buyers in neighborhoods where 10 percent of the housing stock is in foreclosure. Eligible neighborhoods are: Shingle Creek, Lind-Bohanon, Webber-Camden, Cleveland, Folwell, McKinley, Jordan, Hawthorne, Willard-Hay, Harrison and Near North on the city’s northside and Central and Bryant neighborhoods on the southside. From the city’s press release:

Eligible Improvements:

• Outstanding code orders and health and safety hazards

• Floor covering or refinishing

• Kitchen remodeling

• Bathroom remodeling

• New siding

• New or expanded garage, not to exceed 24 ft. x 24 ft.

• Permanent functional landscaping

• Replacement of doors and windows

• Insulation and weather stripping

• Addition to home

• Central air conditioning

• Finishing an unfinished basement or attic

• Replacing a furnace

• Repair or replacement of a deck or patio

Loan Guidelines:

Purchasers must have an income of less than 115% of the area median income ($96,600) and the property must be the owner’s or purchaser’s primary place of residence.

A maximum loan of $20,000 at zero-percent interest.

For every dollar put into the project by the homeowner or purchaser, the City will match with one dollar of funding.

Improvements must be made to a single family dwelling or a duplex within an eligible neighborhood.

New construction properties are not eligible.

The loan is repaid when the buyer sells, ceases to occupy the home, or in 30 years, whichever comes first.

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