Community Development

Home Owner Rehab Program

Requirements (very low to low income):

• Must be less than 80% median income (family size and income guideline schedule)
• Must be owner-occupant of property with minimum of 1 year residency
• Assets cannot exceed $5,000 in value
• Maximum loan amount is $25,000
• All persons on property title are required to sign mortgage (i.e. L/C holder, others on deed)
• Mortgage will be placed on the property for term and/or deferred loan
• Term Loan – Interest rates are 1%-5% (determined by annual gross income)
• Must have the financial ability to repay a term loan, if applicable
• Must have acceptable credit history
• Deferred loan is repaid upon property changing title (i.e. death, sale, transfer, etc.) or at which time the mortgaged property is no longer the principal residence of the recipient
• Property taxes must be current
• Homeowner’s insurance required
• Housing inspection required  (County will perform)
• Completed rehab must meet min. HUD Housing Quality Standards, CD strives for Mich. Residential Code
• Rehab specifications will be bid out to licensed & insured contractors
• Homeowner is not permitted to do the work
• Up to $1,000 landscaping in conjunction with rehab, at CD’s discretion
• Mobile homes must be permanently affixed to property (can be include in loan)
• Mobile homes that have a lien on the certificate of title may not be eligible
• Must be a feasible project per needed repairs vs. available funds, after rehab value, etc.
   

1087 Newell Street, P.O. Box 885
White Cloud, MI  49349
Phone (231) 689-7091       Fax (231) 689-7087