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City Loan Programs Provide Money for Owner-Occupied Home Rehabilitation

The City of Milwaukee Department of Neighborhood Services (DNS), in association with the Neighborhood Improvement Development Corporation (NIDC), offers low-interest loans for owner-occupied home rehabilitation. The Owner-Occupied Rehab Loan program details:

  • Low interest loans, 0% to 3%
  • Funded by Community Development Block Grant (CDBG)
  • Maximum term 15 years
  • Owner occupied, one to two family residential properties
  • Income limits apply

Total household income:

  • One person – less than $37,650
  • Two people — less than $43,000
  • Three people — less than $48,000
  • Four people – less than $53,750

Terms if applicant receives a loan:

  • A mortgage is placed on the house as security for the loan.
  • Borrowers are required to keep property taxes current and adequate homeowner’s insurance for term of loan.
  • Loan becomes due in full upon transfer of ownership of home or when borrower no longer occupies the home as principal residence.

Basic repairs are eligible. Building code compliance, energy conservation, and lead hazard reduction are the top priorities. For more information or an application call Vince Bushell at the YMCA CDC at 263-1380, or call the City DNS Rehabilitation Loan Program directly at 286-5608. SPECIAL LOANS PROGRAM FOR TIN AREA Sections of Riverwest and Harambee are part of a Targeted Investment Neighborhood (TIN) that offers incentives above the normal loan program. Part of the loan is forgiven over time. Only homeowners on the following Streets are eligible: The 2400 and 2500 blocks of Pierce, Booth, Holton, Buffum, Richards, Hubbard, Palmer and First Streets and the 100 thru 600 blocks of E. Meinecke, E. Wright and E. Clarke Streets. Call Vince Bushell at the YMCA CDC at 263-1380 for information on the TIN program. Wisconsin Housing and Economic Development Authority (WHEDA) Home Improvement Loan Program The WHEDA loan program is another option for low-interest home loans to low and moderate-income individuals living in the State of Wisconsin. The income limits are higher than the City of Milwaukee’s loan program so more homeowners would be eligible. The interest rates on the loan are higher but remain below market rate. No equity is required. (Equity is the difference between what you owe on your home and its resale value.) New homeowners usually have little or no equity in their homes. Loan programs that do not require equity in your home make it easier to get a loan. Income limits:

  • 1-2 family $57,600.
  • Three+ family $66,240.00

Call 227-4039 for information on WHEDA’s loan program. Riverwest Currents – Volume – Issue 4 – May 2002