Rehab Loan Programs
The Rehabilitation Loan Program (RLP) and Emergency and Accessibility Loan Programs (ELP) offer essential financial support to low-income homeowners in Minnesota who need assistance with critical home improvements. These programs provide deferred loan financing for those unable to obtain private home improvement financing, ensuring that homes remain safe, livable, and energy efficient.
Program Highlights
- Maximum Loan Amount: Up to $37,500 per eligible property.
- Loan Terms:
- 15 years for homes taxed as real property.
- 10 years for manufactured homes taxed as personal property within a manufactured home park.
- Forgiveness Option: Loans are forgiven if the borrower retains ownership, occupancy, and does not transfer the property during the loan term.
- Eligible Property Types: Includes single-family homes, duplexes, condominiums, and manufactured housing.
Eligibility Criteria
To qualify for the RLP or ELP programs, borrowers must meet the following requirements:
- Income Limits: Must fall within program-specific income limits.
- Asset Limit: Must not exceed $25,000 in assets.
- Ownership and Occupancy: Must own and live in the property being rehabilitated.
- Current on Financial Obligations: Must be current on property taxes and any mortgages.
Approved Home Improvements
Loans can be used for improvements directly affecting the home’s safety, habitability, or energy efficiency, including:
- Lead Paint Hazards: Removal or containment to ensure a safe environment.
- Electrical Wiring: Repairs or updates to meet safety standards.
- Heating System: Furnace or boiler repairs and replacements.
- Plumbing: Necessary plumbing repairs.
- Water Systems: Well and septic repairs or replacements.
- Radon Mitigation: Measures to reduce radon levels in the home.
- Mold Remediation: Addressing mold to improve indoor air quality.
- Windows, Siding, and Roofing: Repairs or replacements to maintain structural integrity.