Get financing for emergency home repairs in North St. Paul
Homeowners in North St. Paul who are facing an emergency situation that makes their home uninhabitable or dangerous may qualify for financing to make repairs. The funds are structured as a loan that has no payments until the homeowner sells, refinances, or leaves the home.
Program Description: This loan program is designed to assist low-income homeowners to correct a condition that makes their home uninhabitable, extremely dangerous to the occupants or causes serious health problems.
Eligible Properties: All properties must be located within the City of North St. Paul. Owner-occupied single-family detached homes and duplexes are eligible. Condominiums and townhomes are eligible for interior repairs only. Homeowner Associations are not eligible.
Loan Amount:The minimum loan amount is $1,000. The maximum loan amount is $8,000.
Interest Rate and Term: The loan carries a 0% interest rate and has no monthly payments. Payment in full is due when the borrower sells the property, no longer resides in the property as their principal residence or transfers title, except that in the case of a refinance, the loan may be subordinated subject to the HRA’s Subordination Policy in effect at the time of the request for subordination.
Income Eligibility: The applicant’s annual household income must not exceed 80% of the Area Median Income (AMI) as determined by the U. S. Department of Housing and Urban Development, adjusted for household size.
|Household Size||80% AMI|
Loan Security: All loans will be secured by a Promissory Note and a Mortgage in favor of the City of North St. Paul Housing and Redevelopment Authority.
Loan-to-Value Ratio: Applicants who have a potential loan-to-value (LTV) ratio in excess of 110% will be denied loan financing.
Eligible Improvements: Any improvement that meets the definition of an emergency as defined above. Final determination of whether or not a condition meets the definition of an emergency shall be made by the NeighborWorks Home Partners (NWHP) construction manager.
Loan underwriting: Applicants must be current on mortgage payments and property taxes.
OTHER GENERAL CONDITIONS AND PROCEDURES:
- Rehabilitation Consulting: The NWHP construction manager will be available to borrowers to advise them about the proposed One bid is acceptable if it is approved by the NWHP construction manager. The construction manager may require additional bids.
- Loan Costs: A non-refundable credit report fee is due at the time of application: $55.13 per married couple; $27.69 per non-married An Owners and Encumbrance Report will be ordered to examine title. The cost is $75.00 and may be included in the loan amount. Mortgage filing fees will be paid by the borrower at closing.
- Initial Applications for Funding: Applications for an emergency loan will be processed on a first-come, first-served basis, as funds are available until all program funds are committed.
- Contractors & Permits: All work must be performed by a contractor. Sweat equity is not permitted on emergency repairs. Contractors must be properly licensed by the State of Minnesota when required. Permits must be obtained when required by city code. Do not sign a contract prior to the closing on your loan. Any work begun in advance of the loan closing will not be eligible to be paid for by the loan.
- Total Project Cost: It is the borrower’s responsibility to obtain the amount of funds necessary to finance the entire cost of the work. If the final cost exceeds the loan amount, the borrower must obtain the additional funds. NWHP can direct borrowers to additional financing sources.The additional funds needed to complete the project must be escrowed with the NeighborWorks Home Partners.
- Custody of Funds: Loan funds will remain in the custody of NWHP until payment is made for completed work.
- Disbursement Process:
a. Payment to the contractor will be made after completion of the work. An inspection will be performed by the City and/or NWHP to verify the completion of the work.
b. The following items must be received before the funds can be released:
- Final Invoice from each contractor showing all amounts paid and due.
- Original Lien Waiver from each contractor
- Completion Certificate signed by each contractor and the borrower
- Evidence of Permits Closed Out
- Final Inspection and approval by NWHP. The above items must be provided to NWHP to begin the preparation of the check(s). Lien waivers must be provided before the funds will be released.
c. Payment checks may take up to 10 business days to prepare after the above items are received. Payments will only be made for work that is completed and approved.