Rental Rehabilitation Loans

You may receive up to $25,000 for a one or two-unit property, or $10,000 per unit for a larger property.  The maximum loan amount is $100,000.  The interest rate is 6%, and the term of the loan may be up to 15 years.

Who is eligible?

Owners must have a good credit history and must be financially secure.  Individuals, partnerships, or corporations can apply for a loan.  In the case of partnerships or corporations, the principals of the organization must also personally guarantee the debt.  Owners must have equity in the property, and the building must have a positive cash flow after rehabilitation.

A building must have been used for residential housing in the past five years.  Mixed-use properties are eligible, provided the majority of the building is used for residential purposes. There may be any number of units in the building.

Loan funds cannot be used for acquiring properties, adding units, refinancing existing debt, converting non-residential space into residential space, or new construction.  Other ineligible improvements include constructing new garages and recreational facilities.

What area does this cover?

• To receive a MHFA Rehabilitation Loan, your rental property must be in one of the northwest Minnesota counties of:  Kittson, Marshall, Norman, Pennington, Polk, Red Lake and Roseau. If you are not in our service area, you may call the Minnesota Housing Finance Agency at 1-800-710-8871 for a list of participating lenders in your area.  For assistance with an application or additional questions, please contact John in this office at 218-637-2431 or e-mail john@nwmnhra.org.

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Site last updated on 06/23/2008