Does Your City Have a Rehab Loan Program?

This little known program is available in Pleasant Hill CA. The information below is from The Pleasant Hill City Website.

ELIGIBLE HOUSEHOLDS

The house must be within the city limits of Pleasant Hill and owner-occupied.  The current, combined monthly income of the entire household must be less than the amount listed on the bottom of the next page – based upon family size.  It is important to note that this program is designed for Pleasant Hill homeowners who are not able to qualify for conventional loans.

ELIGIBLE PROPERTIES

• The dwelling must be located in residential districts and areas designated for residential use within the City of Pleasant Hill.
• The dwelling must be the primary residence of the owner.
• The dwelling is in a condition such that rehabilitation within the scope of this program will bring the unit into a safe and habitable condition.
• The dwelling must have sufficient equity to secure the amount of the loan.  The rehabilitation loan must be a first or second loan against the property and may not be a “third” or lower, even though there may be sufficient equity to cover such positions.

FINANCIAL ASSISTANCE

• Maximum loan amount is $60,000.  Minimum loan amount is $5,000.
• Loan interest rate is 3% fixed, simple interest with an initial 15-year term.  The loan terms may be extended in 5-year increments, after the initial 15-year term, provided the homeowner still meets the income qualifications.
• Loan repayments may be amortized, deferred, or interest only.  The loan committee has the ultimate decision with regard to loan repayment.

TYPES OF REHABILITATION

• Health and safety hazards will be given top priority for consideration in the program.  Common repairs associated with a rehabilitation project include but are not limited to:
  • New roof, gutters and downspouts
  • Attic and wall insulation
  • Kitchen and/or bathroom upgrades
  • Repair/replace concrete driveways, walkways or porches that present a “trip and fall” hazard
  • Drainage work
  • New interior and/or exterior paint
  • Sewer work
  • Replacement of worn flooring
  • Replacement of single pane windows with new, dual pane, energy efficient windows
  • Fences are allowed to be replaced but under very limited circumstances, such as a safety item due to a backyard swimming pool
• Work will be performed by pre-certified contractors participating in a competitive bid process.  In special circumstances, contractors are not on the pre-approved list may be allowed to perform the work, if they meet program guidelines.

2008 MONTHLY INCOME LEVELS

Number of Persons Living in House             1              2              3              4              5              6              7

Total maximum income                                    $5,025   5,742      6,458      7,175      7,750      8,325      8.900

Until Next time Here is to your success! Jason Wheeler 866-833-7413 | Come to a FREE Bay Are Seminar |

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