Ramsey County Rehabilitation Deferred Or Forgivable Loan Program

LOAN PROGRAM UPDATE - MARCH 29, 2023

All currently available funding for the Ramsey County Rehabilitation Deferred Forgivable Loan Program has been exhausted. Please note there is high interest in this program. If you would like to be placed on the interest list, please complete this form, and when additional funding becomes available, you will be alerted with all others on the list.

What’s the catch?

There isn’t one. Ramsey County Rehabilitation Deferred Loan Program is a Community Development Block Grant (CDBG) funded through the US Department of Housing and Urban Development (HUD). The goal is to help homeowners within Ramsey County improve their homes to be healthier and safer for the occupants by removing the costs of making large improvements. Here’s the list of ways you can benefit: 

• Immediate improvements to your home, leading to a safer and healthier home and lowering your energy bills.  
• Your loan will be completely forgiven in 10 years if you stay in the home and do not refinance to take cash value out. 
• The changes you make can: 
  • Save you money  
  • Increase your home comfort and safety 
  • Improve your home’s value 
  • Improve your indoor air quality  
  • Make your home more resilient against the impacts of climate change, like extreme high and low temperatures and more pollutants in the air 

The Fine Print

Eligible Properties: Single-family, owner-occupied, homes within one of the following Ramsey County cities: Arden Hills, Falcon Heights, Gem Lake, Lauderdale, Little Canada, Maplewood, Mounds View, New Brighton, North Oaks, North Saint Paul, Saint Anthony (partial), Roseville, Shoreview, Vadnais Heights, White Bear Township, White Bear Lake. 

Loan Type: Secured loan.  

Since no payments are due on this loan, unless the property is sold or the mortgage refinanced with a cash-out, a notice will be filed on your property. This will be recorded with the register of deeds in Ramsey County and will only be used to notify us that the remaining of the balance of the loan will need to be repaid if the home is sold or refinanced during the life of the loan.  

Repayment Mechanism: The loan is in effect for 10-years. Every year, on the anniversary date of the loan, 10% of the total amount borrowed will be forgiven. Loan balance will only be due if the home is sold, or the first mortgage is refinanced with cash-out before the 10-year life of the loan has ended. 

Eligible Improvements: The scale and scope of your project will be determined by our home assessment team, prioritizing housing quality standards with the greatest impacts to the home. Projects will focus on addressing code violations or other warnings from the city, as well as health and safety specific improvements. We will also help you identify which things you can improve on your own. Example of potential improvements may include repair or replacement of the following: 

• Exterior home painting (siding or trim)  
• Electrical improvements (may also include upgrade or new) 
• Plumbing improvements, including the water heater (may also include upgrade or new) 
• Furnace (may also include upgrade or new)   
• Address structural and foundation problems 
• Stucco or siding improvements or repair  
• Doors 
• Windows 
• Roof 
• Decks/porches (existing) 
• Sidewalks/steps (existing) 
• Retaining walls or fences (existing) 
• Skylights (existing)  
• Garage repair  
• Interior and exterior lead abatement 

Loan Amounts: Up to $20,000 

Loan Term: The loan term is 10 years. 

Loan Rates: The interest rate is 0% for loans. 

Key Underwriting Criteria: These loans don’t look at credit scores or debt-to-income ratios. To qualify you need to have a total household income that is 80% or less of the area median income (AMI), as defined by HUD. You also cannot have bankruptcies or foreclosures within two years of your closing date, and your mortgage must be current with no more than two delinquencies in the past 24 months, except for loans in forbearance. 

Loan Agreement: The loan agreement is between the Ramsey County Housing and Redevelopment Authority and the customer. Some key details to know: 

• If the loan is terminated before the end of the 10-year life, the remaining balance of the loan must be repaid to Ramsey County Housing and Redevelopment Authority. When the payment has been received, the lien on your property will end.  
• After your loan application has been reviewed by Slipstream EFS and approved or rejected, you will be asked to provide some information around your ethnicity and race. This information will not be reviewed by our loan processing staff and will not impact your loan decision. It is only collected because it required by US Department of Housing and Urban Development (HUD) to use the grant funding. 

How can I qualify?

To be eligible for a rehabilitation deferred loan, the property must meet these requirements: 

• Property must be located within the following Ramsey County cities:
  • Arden Hills, Falcon Heights, Gem Lake, Lauderdale, Little Canada, Maplewood, Mounds View, New Brighton, North Oaks, North Saint Paul, Saint Anthony (partial), Roseville, Shoreview, Vadnais Heights, White Bear Township, White Bear Lake. 
• The loan application must be in the homeowner’s name (as it appears on the title). All owners must be loan applicants. 
• Applicant must meet underwriting criteria. (See Key Underwriting Criteria in the Fine Print section below.) 
• Review the homeowner resources:

I’m ready to apply, what do I do?

UPDATE - EFFECTIVE MARCH 29, 2023

All currently available funding for the Ramsey County Rehabilitation Deferred Forgivable Loan Program has been exhausted. Please note there is high interest in this program. If you would like to be placed on the interest list, please complete this form, and when additional funding becomes available, you will be alerted with all others on the list.