|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.|
Option 1: Same as the 1st mortgage loan interest.
Option 2: A % share in the appreciation -- never to exceed 5% simple interest.
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.|
*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.|