Fridley Senior Deferred Loan
The City of Fridley’s Housing and Redevelopment Authority (HRA) wants to provide an incentive for Fridley seniors to make home improvements that will allow them to remain in their homes and/or update the homes for a future sale.
The guidelines below are subject to change at any time without notice. Loan funds are subject to availability. Email or call for complete details.
Hablamos Español: 612-335-5856
About the Loan
- 0% (0.124% APR)*
- No monthly payments.
- Loan amounts from $5,000 to $20,000.
- No down payment required.
- Income Limits Apply
*APR based on $20,000 for 30 years.
Property Eligibility
- 1-4 unit, owner-occupied residential properties within the City of Fridley.
- Condominiums and townhomes, and properties held in Trust are eligible.
- Loan approval is subject to credit and program guidelines.
- At least one borrower must be at least 62 years of age.
Loan Details
- This loan is secured by a mortgage.
- Loan term is 30 years. If the borrower has not sold or transferred title and still occupies the property 30 years from the date of the loan, the loan is 100% forgiven. If the borrower sells or transfers title of the property or the property is no longer occupied by the borrower prior to 30 years, the loan is 100% due and payable.
- Income limit is 60% AMI based on household size and adjusted gross income from the borrowers most recent Federal Tax Return.
- Closing costs apply.
- Eligible improvements include most interior or exterior, maintenance or remodeling.
- A property inspection will be performed to determine project eligibility and prioritization. If there are no health, safety or code violations the borrower may use for any permanent exterior or interior improvements.
- For do-it-yourself projects, a materials list including prices is required. The cost for labor and equipment purchase or rental may not be included in the loan.
- 1 bid is required from a properly licensed contractor.
- Funds are held in a non-interest bearing escrow account at CEE from loan closing until the work is completed and all final documentation is received.
- Our experience has shown that Big Box Stores are not willing to be paid on completion, which is a requirement for this program.
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).
