Affordable Home Improvement Financing for Shoreview Residents

Loans of up to $50,000 are available through the City of Shoreview to make improvements and repairs to homes, including energy efficiency upgrades. NeighborWorks Home Partners works with the city to administer this loan program.

There are two types of loans. Amortizing loans have monthly payments and a low interest rate. Due-on-sale loans are at 0% interest and are paid back when the home is sold, transferred, or no longer owner-occupied as a primary residence. Which type of loan you may qualify will depend on your household income.

Amortizing loans: These loans are available to homeowners whose income is at or below 120% of Area Median Income (AMI). The maximum loan amount is $50,000.
Download Amortizing Loan Guidelines

Due-on-sale loans: These loans are available to homeowners with incomes below 80% of Area Median Income. The maximum due-on-sale loan is $25,000.
Download Due on Sale Loan Guidelines

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Program Highlights:

• Homeowner income must be below 120% of AMI for the amortizing loan, and below 80% AMI for the due-on-sale loan.
• Miminum loan amount is $2000
• Eligible properties are owner-occupied single family homes, townhomes, duplexes, and condiminums within Shoreview city limits.
• Combined mortgage debt, including these loans, cannot exceed 100% of the property value.
• Eligible improvements include those that correct code deficiencies, improve the value of the home, reduce energy costs, improve accessibility. Garages and permanent landscaping may be included. For condominiums and townhomes, only individual interior repairs are eligible.

Application and Loan Disbursement Process:

DO NOT SIGN ANY CONTRACTS OR START YOUR PROJECT UNTIL A  CLOSING HAS TAKEN PLACE.  ANY PROJECT BEGUN BEFORE A LOAN CLOSING HAS TAKEN PLACE WILL BE INELIGIBLE FOR PARTICIPATION IN THE PROGRAM.​

Homeowner Association By-Laws & Covenants: Loan applicants from single family attached or zero lot line detached homes with an active Homeowner’s Association will be required to provide written approval from the Homeowner’s Association certifying the exterior improvements to be funded through this loan program are permissible under governing by-laws and/or covenants of the association.

The City of Shoreview and representative agencies associated with the administration of this program are not liable or responsible for any violations of association by-laws and/or covenants by the applicant for improvements undertaken through this loan program.

Application Process:  Completed applications will be processed by NeighborWorks on first-come, first-served basis, as funds are available until all program funds are committed.  After loan approval, you will be contacted regarding a closing to sign a Promissory Note, Mortgage and subordination disclosure.

Loan Costs:  Borrowers will be charged a credit report fee at application.  The title policy fee may be financed through the loan.  The recording fees to Ramsey County and servicing fees will be paid by the borrower at closing.

Contractors & Permits:  Contractors must be properly insured and licensed by the State of Minnesota when required.  Permits must be obtained when required by city code. Two bids are required for work that exceeds $5,000.  Borrowers must attain required bids and can seek assistance from NeighborWorks in this process.

Work by Owner: Work can be performed on a sweat equity basis.  Loan funds cannot be used to compensate for labor, only for materials. The NeighborWorks construction manager must determine that the owner has the ability to complete the work according to industry standards and within the program time requirements.  The cost of purchasing tools and equipment and the delivery of materials are ineligible expenditures.  Materials must be purchased and installed prior to the disbursement of loan proceeds.  When applicable, a signed building permit must be obtained by the borrower.  Please contact NeighborWorks to receive a Sweat Equity packet along with the application.

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.  Borrower’s contribution to project cost must be paid prior to release of loan funds.

Work Completion:  Weather permitting, work must be completed within 120 days of loan closing.

Disbursement Process:  Loan funds will remain in escrow with NeighborWorks until payment for completed work.  The following items must be received before the funds can be released:

1. Final Invoice from each contractor showing all amounts paid and due.
2. Lien Waiver signed by each contractor.
3. Completion Certificate signed by each contractor and the borrower.
4. Permits Closed. Have the inspector sign the permit card .
5. Final Inspection. Approval by NeighborWorks Home Partners

Homeowners are required to attain and submit the above required documentation.  It may take up to 10 business days after receipt of above items to prepare checks.

Program Disclaimer: The City of Shoreview and the Shoreview EDA maintain the right to at any time to change or discontinue the Shoreview Home Improvement Loan.  The potential changes may impact the maximum/minimum loan amount, loan term, interest rate, and/or qualifications for borrower, property and improvement eligibility.

                   Effective Date: April, 2020

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