Program Guidelines as of April 2019
Home Improvement Loan Program
NORTHWEST HOME EQUITY ASSURANCE PROGRAM
The Home Improvement Loan Program is a membership benefit offered by the Northwest Home Equity Assurance Program. An individual and/or household desiring to make an application to the program must first become a member of the Northwest Home Equity Assurance Program.
- Any individual and/or household desiring to make an application for a loan to the Low-Interest Home Improvement Loan Program (HILP) must become a member of the Northwest Home Equity Assurance Program.
- Each owner of the real estate must agree to the terms, regulations, and requirements of the loan before disbursement.
- Northwest Home Equity Assurance Program members will be advised that the Home Improvement Loan Program must be used for the future repair, maintenance, remodeling, alteration or improvement of a “guaranteed’ residence. Improvements must be completed within six months after the date of loan approval.
- This condition is not intended to exclude the repair, maintenance, remodeling, alteration or improvement of the landscape of a “guaranteed “ residence.
- This condition is intended to exclude the construction of a new residence.
- At a member’s request and NWHEAP’s approval, the Commission will provide him or her a Certificate of Participation. An eligible applicant will be required to sign an Affidavit Certificateaffirming that the loan received under the HILP will be used by the purposes intended.
- A spot inspection or inspections may be made by the Commission to verify that improvements have been made and compliance with the agreements.
- An eligible applicant may not borrow more than the amount of equity value in her or his residence; that value is established by an independent appraisal.
- When a prospective applicant – who has been determined to be eligible – requests information on the HILP, the staff of Northwest Home Equity Assurance Program will provide a list of participating financial institutions as well as brochure further detailing additional requirements and describing the loan program.
- Each applicant must provide a copy of his and her Certificate of Participation to the financial institution from which credit is sought, as proof of eligibility.
1 In order to be eligible, a homeowner must be a member of the Northwest Home Equity Assurance Program. However, if someone who is not currently a member wishes to join the program and subsequently takes advantage of the membership benefit of a home improvement loan subsidy, the information will be provided by Northwest Home Equity Assurance Program staff. An appraisal is required in order to establish a baseline value of the owner-occupied residential property. Only one to four-unit properties qualify for this program. Program parameters and interest rates may change at any time, as market conditions warrant doing so.
|Program One||Program Two||Program Three|
|$5,000-$10,000||$10,001- $20,000||$20,001- $30,000|
|Term of Note
|5 Years||5 Years||7 Years|