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| Homeowners |
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WHO |
| The Property Improvement Program (PIP) - homeowner loan, is a low interest loan for single family homeowners with low-to-moderate income. This program targets a large portion of the community including; first time homebuyers, senior citizens, disabled individuals, and working middle class families. |
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WHAT |
| With a low interest rate PIP loan, it's up to you to decide what kind of repairs are necessary to maintain or improve your home! Depending on local building codes, you may be able to do some of the work yourself, financing only the cost of materials, but not the cost of your own labor. If a contractor is required or preferred, the individual or company must be state licensed.
Almost any type of permanent general improvement can be made. For example: |
- Install insulation
- Install ramps, handicap accessible bathrooms, lifts, etc.
- Replace the heating system (including wood burning)
- Add new siding
- Paint (including removing lead based paint)
- Replace the roof
- Install new windows
- Remodel the kitchen or bathroom
- Upgrade electrical wiring
- Finish an attic or basement
- Even add new rooms and a garage
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HOW |
Decide what improvements you want to make and get estimates. Go to a participating bank, savings and loan association, or community housing office and ask for a MSHDA Property Improvement Program loan application.
You may qualify for a home improvement loan if: |
- You own or are buying a property (no corporate ownership, "DBA" partnerships, trusts, etc.)
- You are a reasonable credit risk, demonstrate an ability to repay the loan and meet MSHDA's underwriting criteria and
- Improvements are permanent and will protect or improve basic livability or energy efficiency of the unit(s)
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Contact a Participating Lender or Community Agent for an application.
Depending upon your financial ability and the amount borrowed, you may take up to 20 years to repay the loan (30 years in limited cases). Lack of equity (the value of the property beyond the amount owed) is not a factor, for loans under $25,000.00.
A 2% origination fee ($100 minimum) is financed in the loan amount (not out-of-pocket).
Maximum Loan Amounts* Per Property are: |
One- Two Units |
$25,000 - $50,000 |
| *must include origination fee |
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The bank, savings and loan association, credit union and/or community agent where you apply for the loan will decide if you meet the guidelines for a MSHDA PIP Loan. Gross annual household income cannot exceed $65,000, and up to $74,750 in certain cities, please see PIP Income Limits .
Interest rates of 4% to 8%* are based upon gross household income as follows:
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| Up to $19,999 |
4% |
| $20,000-$39,999 |
6% |
| $40,000-$65,000/$74,750 |
8% (6% in some cases) |
*The annual percentage rate (APR) will be higher depending upon loan amount, origination fee, etc.
** If the cumulative loan to value of property is below 80% and the MSHDA PIP loan is at least $10,000 - the rate would be 6% instead of 8%. |
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Loans above $7,499 are secured by a mortgage on the property.
Proof of ownership, such as a quitclaim deed, must be traced to a recorded warranty deed. |
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