With the Economic Stimulus package, many cities are offering rehab loans for homeowners. Bloomington has a new program that allows you to purchase a foreclosed home and apply for up to $20,000 in funds to make improvements. You have to have purchased the home within the last 12 months.
One half of the amount borrowed will not have to be paid back if you live in the house for 5 years, the remaining half will consist of a 5% deferred loan that doesn't have to be paid back until the owner sells or no longer lives in the home.
There are designated areas of Bloomington for this loan – it is bordered by American Blvd on the north, E Old Shakopee Rd on the south, Old Cedar Ave on the east and I-35 on the west. More information is available at the city of Bloomington.
Minnesota Housing offers a rehab loan to all homeowners in Minnesota. It is a low interest rate (currently 6.75%) loan for up to 20 yrs. Your income must be under $93,100 and you must live in the home that you want to repair. The maximum loan amount is $35,o00. This loan allows you to use a contractor or do the work yourself.
Most improvements to the livability, accessibility and energy efficiency are eligible, such as new furnace, air conditioning, septic repairs.
Leslie Vanderwerf, Advisors Mortgage - lvanderwerf@advisorsmtg.com – Website
