CITY HOME REPAIR LOANS AVAILABLE

Need or know someone in Minnetonka who requires a few thousand dollars for home improvements, but is short on cash?  Well, the City's 'home enhancement' program may be one answer for current residents and first-time buyers alike.  Minnetonka is offering housing rehabilitation loans to qualified local homeowners to assist with home maintenance and energy improvements.  The maximum loan amount is $15,000; minimum is $2,500. 

Those improvements eligible for the funds include general housing maintenance, mechanical improvements and green investments. Property additions and home modernization might also be approved by the City under certain conditions. So-called “green” or energy-saving investments would include geothermal energy systems, tankless and on-demand water heaters, and rain barrels. 

The City desires certain efficiency standards for general housing maintenance and mechanical improvements. For example, new furnaces must be 90% efficient or better.  Water heaters must carry a .64 energy factor.  And the “U” factor for windows and doors must be less than or equal to .30

Those items ineligible for subsidized improvements are recreational and luxury improvements such as spas, swimming pools, luxury appliances and bath tubs.  Improvements for home beautification or aesthetic purposes, such as new kitchen cabinets, new bathroom tiling, interior painting and carpeting, would also be ineligible, unless approved by the City.  The money may not be used for working capital, debt servicing or refinancing costs.

To be eligible the property must be owner-occupied and homesteaded.  Other required criteria are:

• Single-family detached homes, townhouses or condos subject to Association covenants
• Taxable market value of home cannot exceed $300,000
• Mortgage payments, property taxes and hazard insurance must be current
• First mortgage loan must be a fixed-rate loan (Contract-for-Deed holders may apply as long as the C/D has been filed with Hennepin County)
• The maximum loan-to-value (LTV), including the loan being applied for, cannot exceed 110%

Completed applications will be processed by the Housing Resource Center on a first-come, first-served basis, as funds are available until all monies are committed.  Available dollars for loans are based upon the fund balance for any given period.  Certain income restrictions also apply.  More information can be found at: http://www.eminnetonka.com/news.cfm?story_id=HomeRepairFirstTimeHomebuye... .  Check it out!