5.0 HRSR 12-01-2008 - Laserfiche WebLink

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The following foreclosure recovery activities and resources provide community leaders with a description of the types of financing programs currently available to help individual homebuyers and developers. Using these and other resources GMHF can help local communities in designing geographically targeted initiatives specific to local circumstances that will achieve the greatest impact and leverage. ACQUISITION & REHAB FHA 203 k These loans are made by approved FHA lenders to individual borrowers or qualified non-profits. The program allows the borrower to get just one mortgage loan, at a long-term fixed or adjustable rate, to finance both the acquisition and the rehabilitation of the property in one loan. If a nonprofit is the borrower they can use the loan to buy and rehab a property and then transfer ownership to glow/moderate income buyer who then assumes the mortgage. The 203k program has been used in partnership with state and local housing agencies and nonprofit organizations who have combined the FHA 203k loan with other financial resources, such as HUD's HOME, HOPE, and Community Development Block Grant Programs. HUD encourages use of this program when purchasing FHA foreclosed homes that need rehab. More info at: http://www.hud.gov/offices/hsg/sfh/203k/203kabou.cfm Greater Minnesota Housing Fund (GMHF) GMHF has loan funds available at below market interest rates that can be used for predevelopment, acquisition/rehabilitation, new construction, adaptive reuse or tax credit bridge loans. More info at: www.gmhf.com HOMEOWNER FINANCED REHAB FHA Title I -Rehab Loan This rehab loan program is accessed through private lenders but is insured by FHA. The program allows. individual borrowers to access up to $25,000 (20-year term) generally at or near market interest rate but rates can be negotiated between the lender and the borrower. For single family homes funds can be used for alterations, repairs and site improvements. For multi-family structures funds can only be used for building alterations and repair. Title I loans can be used in connection with a 203k Rehabilitation Mortgage. More info at: http://www.hud.gov/offices/hsg/sfh/title/ti abou cfm ~: v ~~/ Compiled by Greacer• Nfrnriesata Housing Fund. Navernber 2 i, 2008.