City still offering no-interest rehab loans... for now
Homeowners should look into Colorado Springs Urban Redevelopment's owner-occupied home loan program - while it still
lasts - attendees were told at the Mesa Springs Community Association meeting Oct. 11.
The program is available to families identified as low-income, providing them with zero-interest, deferred-payment loans to cover “essential repairs” for owner-occupied single-family homes, according to information provided by Eileen McMullen of City Urban Redevelopment.
However, she told the roughly 30 people at the meeting, “every year the amount of money for the program is reduced. You should take advantage of it while we have it.”
Two basic types of loans exist for owner-occupied homes. People whose income is rated at 65 to 80 percent of “median income” can apply for loans that will have zero interest as long as they are paid back within five years. If that does not occur, the balance can be amortized over 15 years at 1 to 3 percent interest, McMullen explained.
To qualify for such a loan, the income for a family of four would need to be between $41,211 and $50,700.
The other basic loan type is for homeowners with incomes that are less than 65 percent of median. These people do not have to repay their loans at all until the property changes hands, she said. Recertification for such loans is required every 10 years.
To qualify for this type of loan, the income for a family of four would need to be less than $41,211.
Processing time for loan applications usually takes less than two months, she said. One consideration is that total loans against the home, including the city loan, cannot exceed its market value.
For more information, call McMullen at 385-6877.
Westside Pioneer article/press release