OWNER OCCUPIED REHABILITATION PROGRAM
CITY OF MISHAWAKA, INDIANA
DEPARTMENT OF REDEVELOPMENT
For additional information
contact the Redevelopment Department at 574-258-1609 or Email
Community Development
Direct
Loan | Rollover
Deferred Payment Loan
Deferred Payment Loan
| Forgiven Payment Loan
The Owner Occupied Rehabilitation Program is available for owner-occupied
homes within the Borley Park neighborhood and is made possible
by funds from the U.S. Department of Housing and Urban Development.
Beginning in 2003, HUD mandated that entitlement communities begin
to take a neighborhood-specific approach to demonstrate a significant,
measurable impact upon a neighborhood. To that end, the Department
selected the Lincoln Park neighborhood, the second oldest plat in
the City of Mishawaka, to begin neighborhood revitalization efforts.
The Department has now moved to the Borley Park neighborhood in this, the program's second year.
This is a mortgage loan program. A Real Estate Mortgage will be
added to the property. There should be enough equity in the home
to cover the amount of the mortgage. Applicants qualify with income
under limits set by HUD for St. Joseph County, Indiana.
The funds are used to rehabilitate or repair existing homes. Examples
of exterior work are new roofs, vinyl siding and windows. Examples
of interior work are furnaces, bathrooms, kitchens, insulation,
and floor covering. The maximum loan amount is $35,000.00.
The Redevelopment staff handles all paperwork. There is competitive
bidding with independent, local contractors. Loan closings are held
at Mishawaka City Hall.
DIRECT LOAN
- Targeted to non-elderly homeowners who have the ability to repay.
- Lower income limits: Less than 80% of median income for area.
- Interest rate and term adjusted to made loan affordable—to
fit ability to repay.
- Usually 10 year term.
- 4% rate or lower.
- Payable in monthly installments.
- Used with elderly if cash assets are above $100,000.00.
- Secured with a mortgage.
ROLLOVER DEFERRED PAYMENT LOAN
- Targeted to non-elderly homeowners with no ability to repay.
- Repayment deferred for three years. Income review at three
year anniversary of loan—household income and ability to
repay is reviewed.
- If no ability to repay, loan payments deferred for another three
years.
- Three year review may repeat itself.
- When able to repay, then the Direct Loan requirements go into
effect.
- Very low income: Less than 50% of median income for area or
have no ability to repay.
- Secured with a mortgage.
DEFERRED PAYMENT LOAN
- Targeted to elderly (60 years +) or the disabled.
- Income would fall between (50%) and (80%) of median.
- No repayment until home is sold or otherwise vacated by recipient.
- This loan is interest free.
- Cash Assets $70,000 - $100,000.00.
- Over $100,000.00 then eligible for Direct Loan.
- Loan is secured by a mortgage.
- Total amount is due when house is sold by recipient or heir.
FORGIVEN PAYMENT LOAN
- Targeted to elderly (60 years or older) or to the disabled.
- Income must be: 50% of median or less.
- Cash assets cannot exceed $70,000.00.
- Loan amount not to exceed $15,000.00. Amounts needed over this
limit are treated as a Deferred Payment Loan, creating a Combination
Deferred and Forgiving Payment Loan
- No repayments are made on Forgiven Loan.
- Loan is evenly reduced on a monthly basis over a 10 year period.
- This loan is interest free.
- Loan is completely forgiven after 10 years of continuous habitation
by recipient.
- Loan is secured by a mortgage.
- Any amount not forgiven is due when house is sold by recipient
or heir.
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