Corcoran: Homebuyer Purchase Rehabilitation Loan

Loan Terms

Minimum loan amount of $1,000 and Maximum loan amount of $10,000. Maximum available for down payment assistance is $2,500 and Maximum for home improvements is $10,000. In no event shall the combined total exceed $10,000.

• No Maximum Income Limit!
• 0% fixed interest
• The loan is deferred until the time of sale of the property or refinance
• Additional terms, conditions and closing costs may apply and are subject to change without notice.  Financing is secured by a mortgage on the property.  
  
  

Eligible Properties

Single family or duplex properties that are currently vacant due to foreclosure or abandonment, or was a foreclosed property that has been purchased by a nonprofit for the purpose of selling it to an owner occupant or is listed on the Minneapolis 249 vacant and boarded building list.  Contact a loan officer for more information.

Eligible Improvements

• Eligible improvements will be determined through a required prioritization visit performed on each eligible participant's property.  The homeowner must use the funds for the improvements as specified during the site visit.

Examples of Eligible Improvements:

• Roof repair or replacement, including gutters and downspouts
• Repair or replacement of mechanical systems (furnace, air conditioning, water heater)
• Upgrade electrical service, electrical repairs, and needed replacement of fixtures
• Upgrade plumbing service, plumbing repairs, and needed replacement of fixtures
• Structural repairs and reconstruction including foundation or chimney repair and repairs due to termite damage or to treat for termites and other infestations.
• Exterior siding repair or replacement and exterior paint
• Repair or replacement of entrance doors and windows
• Repair or replacement of porches and decks to fix code or safety violation
• Repair or replacement of floor coverings
• Interior wall and ceiling repair, drywall, interior doors and trim, and paint
• Removal of unsightly blight, dilapidation or deterioration due to deferred maintenance,     such as tear down of dilapidated garages or sheds, or removal of dead trees
• Garage repair
• Functional landscaping for redirection of water away from foundations, or retaining            walls to prevent soil erosion
• Sidewalk and driveway repair or replacement
• Smoke detectors and dead bolt locks for safety and home security

Proof of Income

• If you are employed: submit copies of your two most recent paystubs.
• If you are retired: submit a copy of your social security benefits or pension.
• If you are self-employed: submit copies of your Federal Tax Returns for the last 2 years.

Contractors

Loan recipients must submit bids or materials lists. All contractors must be properly licensed to work in the City of Minneapolis. The Center for Energy and Environment will verify that contractors are licensed. It is important that you are satisfied with the bid or estimate you have selected. The Center for Energy and Environment offers assistance in helping you compare and understand the estimates you collect.

Optional Sweat Equity (for the do-it-yourselfer)

Applicants must clearly demonstrate the ability to complete high quality work within the required time period. Loan funds will be allowed for materials only, property owners will not be compensated for their labor. Note: Loan funds will not be disbursed until the project is complete.

Disbursement of Funds

• The purchaser(s) must notify CEE of his/her/their intent to participate in the program prior to  purchasing the property. Generally, a copy of the executed Purchase Agreement for the property will be required to prove intent.
• The purchaser(s) must provide CEE with a copy of the executed purchase agreement, a copy of the mortgage loan commitment letter, and written documentation relative to the loan closing date.
• The purchaser(s) sign the program’s “Participation Agreement” form.
• From funds made available to CEE by the CPED through the NRP, CEE will provide the loan check to the lender, loan closing or title insurance company prior to the purchase closing.
• After the purchase closing, the purchaser(s) must provide written evidence (a copy of the HUD-1 for example) to CEE from the lender loan closing or title insurance company regarding the use of neighborhood funds.  

The current loan terms and conditions stated, including interest rates, do not constitute a commitment to lend or an offer to enter into an agreement, and that such an offer may only be made pursuant to Minnesota Statutes, Section 47.206(3) and (4).