"I bought a condominium in Edinborough with the help of this program. Not only that, as a mortgage originator, I have recommended the program to several buyers who have taken advantage of its many benefits." -Mary Kay M.
"The Edina Housing Foundation provides a wonderful opportunity wish the 2nd Mortgage Program. It has made Edina living an affordable option for hundreds of buyers -- I am one." -Jim G

Program Overview

Purpose To provide assistance to families and individuals looking for affordable home ownership options in Edina.
Maximum Loan Amount A maximum of 25 percent of the purchase price, not to exceed $60,000. The borrower must spend at least 25 percent of their gross income on housing (first mortgage, PITI, etc.)
Term Identical to the term of the first mortgage loan.
Interest Rate Option 1: Same as the 1st mortgage loan interest.
Option 2: A % share in the appreciation -- never to exceed 5% simple interest.
Payments

Option 1: Monthly payments of interest only. Principal due upon sale, refinance or maturity of the 1st mortgage.

Option 2: Defer all payments until sale, refinance or maturity of the 1st mortgage loan. Payments won't exceed the principal loan amount plus a share of the appreciation (not to exceed 5% per year simple interest).

Security The loan will be secured by a subordinate mortgage on the property.
Assumability The subordinate loan is assumable with the approval of the East Edina Housing Foundation.
Purchase Price Not more than $350,000.
Downpayment Borrower shall pay not less than $1,000 towards downpayment, closing costs and/or prepaid expenses.
Income Eligibility
Loans will be made to households earning at or below the following annual income levels:*
Household Size Household Income Level
1-2 $90,400
3+ $103,900

 

*Same as MHFA start up program - subject to change. 

Asset Eligibility Household assets shall not be more than $50,000 after closing, excluding retirement accounts (i.e. 401(k), 503(b), IRA, SEP, etc.) However, a borrower who is 65 or older may have household assets up to $250,000 after closing, including retirement accounts.