Resource for Hopeful St.Cloud Homeowners: The Homestead Incentive Loan Program and Community Development Block Grant

In the quest for affordable housing solutions and community development, local governments and organizations have introduced various grant programs aimed at empowering individuals and communities. The Housing and Redevelopment Authority of St. Cloud has implemented two programs, the “Homestead Incentive Loan Program” and the “Community Development Block Grant” to do so. Let’s delve into what these grants entail and how they contribute to fostering vibrant, sustainable communities.

 

The Homestead Incentive Loan Program

The Homestead Incentive Loan Program was created to aid in the revitalization of St. Cloud’s core neighborhood and help counter the trend of non-owner occupied homes.  To qualify for this $5,000 loan to purchase a homestead within St. Cloud city limits, applicants must meet the requirements. We have listed them below but be sure to cross reference the official website before submitting in case of any updates.

Requirements:

  • Households must have under $50,000 in liquid assets.
  • Household must have a gross annual household income of under $104,000 (1-2 person household) or $119,000 (3+ person household)
  • Property must be within a St. Cloud Core Neighborhood
  • Applicants must own and reside in the property as their primary residence
  • Must use traditional financing (does not apply to a Contract For Deed plan or an ARM Mortgage)

 

Other points of Interest:

  • The maximum loan of $5,000 is interest-free with no monthly payments.
  • Loans are paid back in full if the Applicant sells, refinances, or makes an alternative choice for primary housing within the loan term.
  • Buyer doesn’t have to be a first-time homebuyer
  • Co-signers are allowed
  • Applications are first come first serve.

 

The Community Development Block Grant (CDBG)

The Community Development Block Grant (CDBG) program aimed to provide health, safety, and protection from the weather to St. Cloud residents through home improvement. Examples of improvements covered up to $25,000 provided by this loan are updates to windows, siding, electrical wiring, plumbing, roofing, heating and energy-saving improvements, and disability adaption. To qualify for this $25,000 loan, applicants must meet the requirements. They are listed below but be sure to cross-reference the official website before submitting in case of any updates.

Requirements:

  • Applicants must have under $50,000 in liquid assets.
  • Applicants must have a gross annual household income of under $49,500 (1-person household), $56,550 (2-person household), $63,600 (3-person household), $70,350 (4-person household) or $76,350 (5-person household).
  • Property must be within the city limits of St. Cloud, MN.
  • Property can be a single-family detached home, townhome, or duplex.
  • Applicants must own and reside in the property as their primary residence.
  • Applicants must have owned/lived in the property for more than 6 months.
  • Applicants must be current on loan payments and real estate taxes.
  • Applicants must have homeowners insurance.
  • Applicants must have a clear title to the property.
  • Applicants’ total loan-to-value must be 110% or lower
  • Work must be completed within 90 days by a licensed contractor

 

Eligible Improvements:

  • Roof
  • Insulation
  • Windows
  • Doors
  • Siding
  • Electrical Wiring
  • Plumbing
  • Accessibility
  • Handrails
  • Radon Mitigation

 

Other points of Interest:

  • Lead-based paint test must be performed on all properties built before 1978.
  • Applications are first come first serve.

 

Impact and Benefits

Both the Homestead Incentive Loan Program and the Community Development Block Grant provide significant assistance to the St. Cloud community. These two loan programs bring safe and affordable homeownership to homeowners new and old who want a space for their households to thrive in. This will help St. Cloud grow and thrive. If you can take advantage of either of them to improve your life, apply today! Applications are first come first serve so move quickly.

At House Help MN we understand the importance of a home and how big of a decision it is when it comes to buying or selling, and that not every situation is the same. That is why we follow a strict code of ethics and are transparent with everything we do. With 20 years in the real estate industry, we will walk you through multiple options and help you every step of the way. We will find a solution that is right for you and make the process quick and as easy as possible.

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