Program Overview

Purpose   To provide assistance to families and individuals looking for affordable home ownership options in Edina.
     
Maximum Loan Amount   Up to $60,000 Ð see your loan officer for the amount you qualify for.
     
Term   Identical to the term of the first mortgage loan.
     
Interest Rate   The lesser of 5% simple interest or the first mortgage loan interest rate minus 1%.
     
Payments  

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.

     
Security   The loan will be secured by a subordinate mortgage on the property.
     
Assumability   The subordinate loan is assumable with the approval of the East Edina Housing Foundation.
     
Purchase Price   Not more than $325,000.
     
Downpayment   Borrower shall pay not less than $1,000 towards downpayment, closing costs and/or prepaid expenses.
     
Income Eligibility  
Loans will be made to borrowers earning at or below the following annual income levels:
   
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
     
Asset Eligibility   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.