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Madelia Housing
Loan Program Purpose: To stimulate private sector investment into the purchase of homes by creditworthy individuals who are willing to make Madelia their permanent home. Project Eligibility: The house must be the individuals homestead and can either be new construction or an existing home. Loan Amount: Minimum loan will be $ 1,000.00 and the maximum loan will be $ 9,000.00. Adjustable Interest Rate: Every loan will have a three year adjustable rate mortgage. Interest Rate: The interest rate will be based upon the gross annual income of all individuals living in the household who are over 18 years of age. 2% - under $ 15,000.00 3% -between $ 15,000 and $ 25,000.00 4% - between $ 25,000 and $ 35,000.00 5% - between $ 35,000 and $ 45,000.00 6% - between $ 45,000 and $ 55,000.00 7% - between $ 55,000 and $ 65,000.00 8% - over $ 65,000.00 Loan Security: Second mortgage on the home being purchased or constructed or other approved collateral. Other Terms: Loan cannot exceed 30% of the purchase price or construction cost. 10 years maximum loan term. Purchase price cannot exceed 115% of the current years assessed market or appraised value. Appraisal will be required if purchase price is over $50,000.00 and the purchase price exceeds the 115% of assessed market value. A minimum of $ 20.00 per month payment. Adequate insurance coverage is required on the collateral. Applicant must demonstrate the financial means to repay the loan. Applicant must not have filed bankruptcy within the past two years. Applicant must have $1,000.00 for down payment and funds for closing costs. Loan is due and payable in full if property ceases to be homestead. Applicant will incur expenses for the drafting of legal documents required for the loan. The Madelia City Council reserves the right to change any policy or loan requirement dealing with this program. First Time Home Buyers are required to attend a Home Stretch Program. Other Information: This brochure is a brief description of this loan program. A more detailed sheet and application form is available at City Hall during normal business hours. 1/2000 City of Madelia 116 West Main Madelia MN 56062-1497 507-642-3245 800-606-9261 507-642-8556(fax) e-mail: cityhall@madeliamn.com Web Site: www.madeliamn.com |
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