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Program Overview
| Purpose |
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To provide assistance to families and individuals looking for affordable home ownership options in Edina. |
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| Maximum Loan Amount |
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Up to $60,000 Ð see your loan officer for the amount you qualify for. |
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| Term |
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Identical to the term of the first mortgage loan. |
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| Interest Rate |
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The lesser of 5% simple interest or the
first mortgage loan interest rate minus 1%. |
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| Payments |
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Option 1: Monthly payments of interest only; principle due upon sale, refinance or maturity of the first mortgage.
Option 2: Defer all payments until sale, refinance or maturity of the first mortgage loan — payment not to exceed the principal loan amount plus 5% per year simple interest. |
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| Security |
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The loan will be secured by a subordinate mortgage on the property. |
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| Assumability |
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The subordinate loan is assumable with the approval of the East Edina Housing Foundation. |
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| Purchase Price |
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Not more than $325,000. |
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| Downpayment |
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Borrower shall pay not less than $1,000 towards downpayment, closing costs and/or prepaid expenses. |
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| Income Eligibility |
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| Loans will be made to borrowers earning at or below the following annual income levels: |
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| Household Size |
Income Level |
| 1 |
$58,730 |
| 2 |
$67,200 |
| 3 |
$67,200 |
| 4 |
$67,200 |
| 5 |
$72,600 |
| 6 |
$78,000 |
| 7 |
$83,400 |
| 8 |
$88,800 |
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| Asset Eligibility |
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Household assets shall not be more than $50,000 after closing, excluding retirement accounts (i.e. 401(k), 503(b), IRA, SEP, etc.) However, a borrower who is 65 or older may have household assets up to $250,000 after closing, including retirement accounts. |
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