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DRAFT <br />CITY OF ROSEVILLE <br />FAMILY HOME OWNERSHIP REHAB LOAN PROGRAM <br />PROGRAM GUIDELINES <br />Loan Pool <br />: The City of Roseville Housing & Redevelopment Authority (RHRA) is making <br />approximately $250,000 available for exterior and interior home improvements in Roseville <br />specifically for families with young children to assist in attracting and retaining young families in <br />Roseville. <br />Program Overview <br />: The loan program is designed to supplement existing loan programs available <br />from MHFA, Ramsey County, RHRA, private lenders and other similar sources. Eligible work shall <br />include repairs, replacement or new construction that will: <br /> 1. Improve the exterior and/or interior of the property. <br /> 2. Correct local or state code deficiencies, health and safety items. <br /> 3. Improve handicap accessibility. <br /> 4. Reduce long-term maintenance and energy costs. <br />Interest Rate <br />: The loans will be at 4 % interest. <br />Eligible Properties <br />: All properties must be located within the City of Roseville. Owner-occupied <br />single and duplex properties are eligible. The property value for taxes for 2005 must be at or below <br />$216,000 and the home must be 25 years or older. <br />Income Eligibility: <br /> The total household income must be at or below 120% of the current median <br />household income as defined by HUD. (see attached chart) <br />Household Eligibility <br />: The household size must include 3 or more people with one person at or <br />below the age of 16. <br />Loan Amount <br />: The maximum loan amount is $25,000. The maximum principle amount of a <br />Roseville Revolving Loan, when combined with the outstanding balance(s) of any existing Roseville <br />Revolving Loan (s), must not exceed $25,000. <br />Loan Term <br />: The maximum loan term is 10 years. Generally the term will be one year for every two <br />thousand five hundred dollars borrowed. <br />Loan Security <br />: All loans will be secured by a mortgage in favor of the RHRA. <br />Debt - to - Income Ratio: <br /> Applicants must have the ability to repay the loan. Applicants who have a <br />potential “debt - to - income ratio” in excess of 55% will be denied loan financing. <br />Loan - to - Value Ratio: <br /> Applicants who have a potential “loan - to - value” ratio in excess of 115 % <br />will be denied loan financing. <br /> Page 1 of 3 <br /> <br />