Single Family Rehabilitation Loan

Loan funds can be used to make a wide range of improvements to residences. This includes both exterior improvements like roofing, siding, and windows, as well as internal rehab work like bathroom or kitchen rehabilitation and accessibility improvements. The funding can also be used to address code violations and lead based paint hazards.

Loan funds cannot be used to rehabilitate detached structures, such as sheds or garages, nor be used for landscaping or pool repairs. Additionally, loan fund cannot be used to replace appliances.

• The applicant must be the owner of the property to be rehabilitated and must have held title to the property for at least 6 months prior to the date of application.
• The property must be used for residential purposes and must contain no more than two dwelling units, one of them being owner-occupied.
• The property must be classified as homesteaded by the Olmsted County Assessor’s Office.
• Eligible properties in the 100-year flood plain zone must carry flood insurance that will cover the cost of the improvements that are made to the property through the rehabilitation loan program for the remaining economic life of the improvements.
• Property taxes and city utility bills must be current at the time of application.
• The combined indebtedness secured by the property and the estimated cost of rehabilitation cannot exceed 110% of the property’s value after rehabilitation.
• The total cost of the rehabilitation shall not exceed fifty percent (50%) of the dwelling’s estimated market value as determined by the County Assessor.