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Draft Exhibit B-11 <br /> interest rates on MHFA funded loans and City funded loans more consistent and leverage <br /> additional dollars for the City. The City will dictate the interest rate offered through the <br /> Discount Loan Program. <br /> 1. Underwriting Decision: Underwriting of these loans will follow the MHFA procedural <br /> manuals and normal and prudent underwriting criteria. <br /> 2. Loan Amount: Minimum loan amount $1,000, maximum loan amount$25,000. <br /> 3. Income Limit: Per MHFA guidelines, eligible borrowers must have an annual <br /> household income of less than the current MHFA Community Fix-up Fund income limit <br /> (currently $95,150). <br /> 4. Debt-to Income Ratio: Per MHFA guidelines, applicants must prove the ability to <br /> repay the loan and have a debt to income ratio less than 48%. <br /> 5. Loan Term: Generally, one year per $1,000 borrowed. The maximum term will be 15 <br /> years. <br /> 6. Eligible Improvements: Per MHFA guidelines, eligible improvements are determined <br /> by the MHFA for the individual financing programs and are stated in the Procedural <br /> Manuals for each program. Eligible improvements will be consistent with the City's <br /> Home Improvement program. <br /> 7. Eligible Properties: Per City guidelines, 1-2 unit owner-occupied properties located in <br /> the City of New Brighton. <br /> 8. Loan Servicing: MHFA will be responsible for servicing the loans. <br /> 9. Disbursement of Funds: Per MHFA guidelines, loan funds will be disbursed to the <br /> borrower upon loan closing. <br /> 10. Loan Security: As required by the MHFA, all loans will be will be secured with a <br /> mortgage. <br /> 11. Loan Costs: Administrative fees will be paid from the City's Administrative Budget for <br /> this program. Servicing costs will be paid by MHFA. Borrowers will pay all filing fees. <br /> Terms of the City's Mobile Home Revolving Loan Fund <br /> The City's Mobile Home Revolving Loan fund offers owners of mobile homes the opportunity to <br /> borrow funds at below market rates to make home improvements to their properties. <br /> 1. Interest Rate: 4% <br /> 2. Income Limit: No maximum income limit <br /> City of New Brighton Home Improvement Program Page B-2 <br /> Center for Energy and Environment 6/2011 <br />