Single Family Programs

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Single Family Programs April 27, 2009 Iron
Range Resources Economic Stimulus Workshop
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Minnesota Housing

• First Time Homebuyer Programs
• Homebuyer Education and Counseling
• Foreclosure Prevention
• Home Improvement Programs
• Housing Development Program
• Multi-Family Division

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What Well Cover

• Single Family Home Improvement Programs
• First-Time Homebuyer Programs
• Community Revitalization Fund (CRV)

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Home Improvement Programs

• Rehabilitation Loan Program
• Basic repairs for low-income homeowners
• Fix-Up Fund (FUF)
• More flexible improvement program for low and
  moderate income homeowners
• Community Fix-Up Fund (CFUF)
• Targeted program stressing partnership leverage
• All aim to improve livability, safety, energy
  efficiency

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Rehabilitation Loan Terms

• 15 or 20 year, 0 deferred forgivable loan
• Loan amount 1,000 to 15,000 (20,000 for lead
  or accessibility)
• Loan is due on sale, transfer of title, or if
  property no longer primary residence
• Emergency loans
• Change to HOME funds coming this fall

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Administrator Network

• Rehab loans available only from participating
  lenders
• Municipal or County HRAs
• CAP agencies
• Non-Profits
• 50 lenders throughout the state

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Fix-Up Fund (FUF)

• Fix-up Fund loans available only from approved
  lenders
• Banks, credit unions, savings banks
• Housing organizations, non-profits, government
  units with
  consumer
  lending expertise
• Funding continuously available
• Micro-energy energy conservation loans

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Loan Terms

• Maximum loan amount of 35,000
• -Borrow up to 10,000 for as long as 10 years
• -Borrow from 10,001 to 35,000 as long as
  20 years
• Loan is due on sale, transfer of title, or if
  property no longer primary residence
• Interest rate comparable to market

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Borrower Eligibility

• Minnesota homeowners
• Owner-occupied properties
• Low to moderate income
• Current income limit 93,000
• Meet lenders credit underwriting standards
• Able to repay loan

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Eligible Improvements

• Permanent general improvements to basic
  livability of property
• Repairs, remodeling, alterations to existing
  structure
• Examples of ineligible improvements
• Personal property items, such as appliances
• Garages larger than 800 square feet
• Recreational items such as gazebos, saunas, pools

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Community Fix-Up Fund (CFUF)

• Targeted Fix-up Fund loans to address specific
  needs
• Partnerships between local lenders community
  partners
• Addendum to lenders Participation Agreement
• Lower interest rate
• Higher loan processing fees for lender

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CFUF Initiative Types

• Discount Loan Initiatives
• Local leverage helps write down interest rate for
  borrower
• Allows program to reach a wider target
• Value-Added Initiatives
• Lender can offer lower CFUF rate in exchange for
  services such as rehab advising or translation
  assistance
• Non-Prime Loan Initiatives
• Provide financial management credit counseling
• Risk based interest rate

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First-Time Homebuyer Programs

• Borrower
• Applies with a lender that originates Minnesota
  Housing first mortgage programs.
• Lending Partner
• Originates, processes, underwrites, closes and
  funds the loan FHA, VA, RD, Fannie, Freddie
• Sells the loan to Minnesota Housing

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Minnesota Mortgage Program (MMP)
MMP TOOLS
Available Statewide
Minnesota Housing Interest Rate
FHA, RD and VA Available
3,000 ECA for Targeted Borrowers
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Community Set-Aside Activity Program (CASA)
Program Features
CASA TOOLS
CASA Supports community-based partnerships that
target funds to
Workforce Housing
Emerging Markets
Single Headed Households
Minnesota Housing Interest Rate
3,000-14,999 Entry Cost Assistance
Homebuyer Education Required
FHA, RD, VA Loans
Minnesota Housing MI Rates /Job Loss Protection
Expanded Approval Available
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HOME Help

• Down payment closing cost assistance program
  for CASA Initiatives
• Provides up to 14,999 in entry cost assistance
• Lower income/house price limits
• Federal HOME property requirements including HQS,
  lead and environmental review

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Community Revitalization Program (CRV)

• Acquisition
• Rehabilitation
• Acquisition-rehab-resale
• Owner-occupied rehab
• Demolition/removal
• New construction
• Other housing needs

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Whats New in CRV

• Spring round cancellation
• Amended fall timeline App out 8/3/09
• Funding priority foreclosure remediation
• Green Communities Criteria
• LAAND
• Design components encouraged

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• Questions?

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For More Information Contact
Minnesota Housing Homes Division Help
Desk 651.296.8215 or 1.800.710.8871

• For more information or to view Procedural
  Manuals, Forms, Lender Lists Visit
  www.mnhousing.gov