Frequently Asked Questions
- Is this a grant program?
No. This is a loan program. The City will record a lien (deed of trust) on your property with the Greene County Recorder's Office that secures the loan, and a promissory note is required. If you qualify for a fully deferred loan, (0% interest loan that does not require monthly payments) the loan is due if you no longer reside in your home or property ownership is transferred. Some portion of the loan may require monthly payments at 5% interest. This will depend on household income.
- What are the income limits?
The gross annual household income cannot exceed the income limits below according to household size (be sure to include income from all persons living in your home who are eighteen years of age and older):
Income Limits Household size 1 2 3 4 5 6 7 8 Income Limit 28,800 32,900 37,000 41,100 44,400 47,700 51,000 54,300
- Is a contract for deed eligible?
No. You must be the record owner of the property. This generally means you hold a warranty deed on the property and it is recorded at the Greene County Recorder's Office.
- Is it ok if I already have a loan on the property when I apply for a city loan?
Yes. The city can take a second lien (deed of trust) behind a conventional lender (but not an individual) so long as the property appraises for a value on an "as-improved" basis sufficient to cover all debt on the property. If the property is seller-financed or another individual holds the first deed of trust, then they would be asked to subordinate their lien to a potential city loan during the application process.
- Can I do the work myself and be the general contractor?
No. We have a contractor list where all contractors are notified of your project and given an opportunity to bid, which provides the necessary competitive bidding when federal funds are involved.
- What if I don't have a very good credit report?
Derogatory items on your credit report will require explanation. However, a bad credit report will not necessarily prevent you from obtaining a city loan. Good credit is preferable, but there are other factors that are considered, like your ability to repay the loan and/or maintain the property (i.e., maintenance upkeep, homeowner's insurance, and real estate taxes).
- What if I decide to sell my home at some point in the future?
This is okay. The City loan must be paid off at closing. However, using City loan funds to fix up your home for the purpose of selling it is not an eligible activity.
- How is the contractor paid?
The City will encumber the loan proceeds and pay the contractor in stages as work is completed. A City Project Specialist assigned to your project will monitor the work and payments to the contractor and subcontractors. The property owner will endorse all checks.
- Is there a waiting list?
Yes. The wait time varies and is dependent upon funding and scheduling. Applications are reviewed for eligibility and placed on the waiting list if eligible.
- What must I do to comply with my loan after the work is complete?
You must remain an occupant of the dwelling, maintain homeowner's insurance, keep real estate taxes current, maintain the home in a reasonable condition, and make timely payments if a monthly payment is required. These are all requirements of the deed of trust. To ensure the properties are properly maintained after rehabilitation, recipients of City loans are required to enroll in a home maintenance training course, currently being offered by Urban Neighborhoods Alliance. This course covers home maintenance and basic home ownership responsibilities.