If you are purchasing a foreclosed home and it is in need or minor or major repairs, you may qualify for a rehab loan of up to $50,000 (although average loans will be $23,000 to $30,000) to make the required repairs. The amount of Rehab needed is determined by the St. Cloud HRA, based on Housing Quality Standards (HQS). This is NOT a grant. It is a 30-year, deferred 2nd mortgage. There are no payments or interest, but the funds must be repaid after the 30 years is up, or if you sell the home before the funds are repaid, if you refinance, or lastly, if the home ceases to be your primary residence. Rehab will be coordinated by HRA staff and funds will be escrowed at the time of closing and paid directly to the Contractor when the work is complete.
If you have further questions, contact:
Shannon Adamski: sadamski@stcloudhra.com or speak with anyone in the Development Department - 320-252-0880
Forms and Information:
Limited English Proficiency Plan
