The Fix-up Fund, offered by locally participating lenders in partnership with the Minnesota Housing Finance Agency, now offers an annual percentage rate of 5.25 percent fixed for the life of the loan.
Fix-up Fund loans are offered statewide subject to income guidelines. Household annual income must not exceed $65,000 in Greater Minnesota.
Participating lenders, which include banks, credit unions and non-profit organizations, offer the loans as a community service to homeowners.
Improvements eligible with the Fix-up Fund include siding, roof replacement, furnace and air conditioning, a room addition, kitchen remodeling, septic system upgrade, energy conservation, wiring, plumbing and accessibility improvements for a household member with a disability.
"With this new, low cost, below market rate the Fix-up Fund loan serves as a vital, affordable tool for homeowners who wish to make home improvements and repairs or to make their homes accessible to a disabled family member," said Michael Haley, assistant commissioner with the Minnesota Housing Finance Agency.
Loans are available up to a maximum amount of $25,000. The repayment term, a maximum of 20 years, is based on loan amount and household income and debt. Closing costs are generally much less than many home equity loans. Homeowners may identify a contractor of their choice or complete the work themselves.
Application is easy. Homeowners submit a credit application along with itemized bids or materials estimates for proposed improvements. The lender completes any paperwork and closes the loan. Funds may be used for single-family homes, duplexes, triplexes and quads that are owner-occupied year-round.
Funds are available now. The interest rates are subject to change based upon market conditions. Current interest rates and a list of participating lenders are listed on the MHFA Web site at www.mhfa.state.mn.us and are available by calling (800) 710-8871.
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