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Home Improvement Loan Program Guidelines

Home Improvement Loan Program Guidelines

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.

  1. 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.
  2. Each owner of the real estate must agree to the terms, regulations, and requirements of the loan before disbursement.
  3. 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.
  4. This condition is not intended to exclude the repair, maintenance, remodeling, alteration or improvement of the landscape of a “guaranteed “ residence.
  5. This condition is intended to exclude the construction of a new residence.
  6. 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.
  7. A spot inspection or inspections may be made by the Commission to verify that improvements have been made and compliance with the agreements.
  8. 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.
  9. 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.
  10. 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.

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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 Tiers

 

Description

 

Program One Program Two Program Three
Dollar Range

 

 

$5,000-$10,000 $10,001- $20,000 $20,001- $30,000
Term of Note

 

 

5 Years 5 Years 7 Years
Borrower Pays

 

 

0.00% 2.00% 4.00%