Loans available to help rehab homes in foreclosure-impacted neighborhoods
Beginning April 25, homeowners and buyers in foreclosure-impacted neighborhoods of Minneapolis can apply to the City's Rehab Support Program, which provides $750,000 in financing to complete improvements, potentially increasing their home’s market value. The pilot program offers loans of up to $20,000 at zero-percent interest. 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. Approximately 50 loans will be available through this program.
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.
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.
Complete information about the program and list of eligible rehab projects see Guidlines for the Rehab Support Program (pdf). You can also get details about the Rehab Loan Program by calling the Greater Metropolitan Housing Corporation, program administrator, at (612) 588-3033.
Published Apr. 19, 2011