Home Improvement Loan Program

Loan Tiers

$5000 to $15,000 Loan
0% Interest
5 year term

$15,0001 to $20,000 Loan
2% Interest
7 year term

$20,0001 to $30,000 Loan
3.5% Interest
15 year term

Program Guidelines as of April 2019

Home Improvement Loan 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.

The Process

In order to receive access to our exciting new Home Improvement Loan Program.

First, you need to complete an application. Then, we will have one of our program appraisers visit your home to provide your current home value. Your cost to join is the price of the discounted appraisal:

Single – 2 unit   $150.00

3- 4 units             $175.00

An appraisal is required to benchmark the value of your home. In the future, if you decide to sell your home we GUARANTEE that you will receive the full value of your investment back. *

Once your appraisal is complete and a commissioner has reviewed your appraisal and application, you will receive a signed and notarized Certificate of Participation.  You will be able to take that letter of participation to one of our participating banks to begin the application process for a low to no interest home improvement loan. You MUST use one of our participating banks, and it is highly advisable that you call our office prior to beginning the loan application process to ensure that you will have everything you need. If your current appraisal is more than 3 months old, you may be required to obtain a more recent appraisal by the bank.

The application process for a home equity line of credit is the same as it would be via any other bank.  NWHEAP is not involved in the process of approving or denying any loan applications.  Determination of eligibility is performed by the bank and is based on a number of criteria, including the amount of equity in your home, other outstanding debt (not including medical debt), credit score, and debt to income ratio.

Email info@nwheap.com if you would like more information regarding the process, our current brochure or an application to join.

*subject to additional terms and conditions (65 ILCS 95/8) (from Ch. 24, par. 1608)