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<br />Exhibit A Page 3 <br />Agreement between Elk River HRA and Center for Energy and Environment <br /> <br />Loan - to - Value Ratio: The ratio of all loans secured by the property, including the new loan, should <br />not exceed 100% of the property value. Half of the improvement value may be added to the initial <br />property value. (Most of our programs go up to 110% of after improved value. We add ½ of the value <br />of improvement value. We use the Estimated Market Value from the most recent property tax <br />statement, higher of purchase price or appraised value in the past 12 months. We do allow Zillow <br />values in some programs). <br /> <br />Income Limit: No maximum income limit. <br /> <br />Debt - to - Income Ratio: Applicant must have the ability to repay the loan. An applicant who has a debt <br />to income ratio in excess of 43% will be ineligible to receive financing. <br /> <br />Credit Score Requirement: All borrowers must have a minimum of a 620 credit score. <br /> <br />Credit Requirements: 1) All mortgage payments must be current and reflect no 30 day late payments <br />history in the past 12 month period (without reasonable explanation). 2) All real estate taxes must be <br />current. 3) No outstanding judgements or collections. 4) Bankruptcy must have been discharged for at <br />least 24 months prior to loan closing. 5) The redemption period on prior foreclosures must have <br />occurred at least 24 months prior to the loan application date. 6) Generally, no more than two 30-day <br />late payments on credit report in the past year (without reasonable explanation). Any 30 day late <br />requires a documented explanation and reasonable reasons; medical, unemployment, divorce. 7) No <br />defaulted government loans. <br /> <br />Multiple Loans per Property: More than one loan per property is allowed, however, the outstanding <br />balance(s) cannot exceed the maximum program limit and previous loans are current and have an <br />acceptable payment history. <br /> <br />Eligible Use of Funds: Loans may be used to finance most permanent interior and exterior <br />improvements including, but not limited to: roofing, siding, doors/windows, plumbing, electrical, HVAC, <br />insulation, solar, garage, driveways, sidewalks/steps, painting, flooring, additions, landscaping, etc. <br /> <br />Ineligible Use of Funds: Payment for work initiated prior to the loan being approved and closed, unless <br />due to emergency. Recreation or luxury projects (pools, lawn sprinkler systems, playground equipment, <br />saunas, whirlpools, etc.), furniture, non-permanent appliances(unless part of a full kitchen remodel), <br />and funds for working capital, debt service, homeowner labor or refinancing existing debts are NOT <br />allowed. <br /> <br />Bids: Only one estimate is required. All contractors must be properly licensed. <br /> <br />Sweat Equity / Homeowner Labor: Work may be performed by property owners on a “sweat equity” <br />basis. Loan funds may be used only for the purchase of materials and to rent tools/ equipment, but not <br />to compensate for labor. <br /> <br />Remodeling Advisor Visit (RAV): The Remodeling Advisor Visit provides rehabilitation and/or <br />remodeling advice upon request of the resident. The intent is to help residents improve their homes by <br />providing technical assistance before and during the bidding and construction process. All “Eligible <br />Properties” are eligible for this service. This visit is not required and would be paid by the borrower(s).