The Minnesota Housing Finance Agency (MHFA) offers improvement loans for Minnesota residents with modest incomes. This program assists low to moderate income homeowner’s to improve efficiency and accessibility of their homes.

Homeowners must own and occupy the property to be rehabilitated, have current property taxes, mortgage and homeowner’s insurance, must not have assets that exceed $25,000.00 and meet the income limits. Maximum loan is $15,000.00. Maximum loan term is 20 years for properties taxed as real property and 15 years for mobile homes taxed as personal property and located in a mobile home park. All loans are forgiven if the borrower does not sell, transfer title, or ceases to occupy the property during the loan term. We have served 7 households for a total of $105,000.00.

The applicant must be income eligible:

• The applicant must own property that is being improved. It must be a principal place of residence, and it must be current in property taxes.
• The applicant’s net value must be no greater than $25,000. (This excludes “personal” property, the property to be improved including two surrounding acres or two platted lots, and one motor vehicle.)

An MHFA loan may be used for basic and necessary improvements that make the home more livable and energy efficient, such as:

• Mechanical: electrical, plumbing, and heating systems
• Structural: roofs, foundations, flooring, and stairways
• Energy: insulation, windows, doors
• Compliance: applicable housing codes

Persons with a disability may use a loan for:

• Ramp or mechanical lift
• Widened doorways
• Bathroom fixtures and layout
• Kitchen and laundry modifications
• Wheel-In Shower Stalls