Laserfiche WebLink
14. Multiple Loans: Only one loan, but if ownership changes the new owner is eligible. If <br />previous owner purchases a new home in Brooklyn Park they are eligible if considered <br />a first time homebuyer. The cumulative outstanding balance of all Brooklyn Park loans <br />cannot exceed $50,000 <br />15. Subordination: Full repayment of the loan is required unless the borrower is <br />refinancing for a better interest rate to lower monthly payments or cash out funds for <br />critical home repairs. <br />16. Underwriting Decision: Borrower(s) must meet 1st mortgage lender requirements. <br />17. Borrower Fees: All applicable mortgage filing fees, wire transfer, title, credit report, <br />flood inspection and any other relevant closing costs associated with the loan. <br />18. Participating Lenders: Brooklyn Park EDA recommends the utilization of lenders <br />with a presence in the City of Brooklyn Park. <br />19. Purchase price: Cannot exceed $340,000 (subject to change) <br />20. Eligible Use of Funds: The loan funds can only be used for down payment and/or <br />closing costs. The borrower cannot receive any portion of these funds as cash. <br /> <br />Rental Rehabilitation Loan Program <br /> <br />1. Loan Amount: Loan amounts from $10,000 to $100,000 (Maximum amount per <br />unit is $10,000, but the EDA may consider requests for loan amounts greater than <br />the maximum on a case by case basis). A maximum of $100,000 between the <br />Rental Rehabilitation Deferred and Amortizing Loan Programs <br />2. Matching Requirements: None <br />3. Amortization Type: Amortizing <br />4. Loan Term: Up to 10 years <br />5. Interest Rate: 0% if the Borrower(s) agree to Rent Limitations and 3% if there are <br />no Rent Limitations <br />6. Loan-to-Value ratio: 100% <br />7. Income Limit for Borrower: None <br />8. Income Limit for Business Entities: None, but the business must have been in <br />business for at least one year and show positive cash flow from the most recent <br />Federal Tax Return. If a tax return hasn’t been filed a Profit & Loss Statement and <br />Budget must be provided along with current Lease and verification that rent is <br />being received (1 month verification). <br />9. Income Limit for Tenants: None <br />10. Rent Limitations: Borrowers must agree that rents charged do not exceed 60% <br />AMI affordability levels and will be verified annually. If the Borrower agrees to the <br />Rent Limitations they MUST restrict rents for 10 years from the date of closing or <br />until the property has been sold or ownership has been transferred. <br />11. Loan Security: The loan will be secured with a mortgage in favor of the EDA, <br />unless the borrower is a Condominium or Townhome Association. <br />12. Credit / Underwriting Requirements: All mortgages and property taxes must be <br />current. No outstanding judgements, liens or pending Bankruptcy or Foreclosure. <br />13. Debt-to-Income Ratio for Natural Persons: 50%