Rental property owners who want to make improvements can borrow up to $25,000 for a one or two unit property, or $10,000 per unit for larger properties. The total loan amount cannot exceed $100,000.
The loan is amortized for up to 15 years at 6 percent interest.
There are some restrictions. First, the duplex or investment property must be occupied by individuals or families whose income is less than 80 percent of the statewide median income.
The median income for a family of two or less in Minnesota is $73,100. Eighty percent of that is $58,480, an amount which should help many Minneapolis and St Paul duplex owners qualify.
Income property owners need to have a good credit history to qualify for the loan. The duplex also must have some equity, and a positive cash flow.
The loan is not limited to individual property owners. Partnerships or corporations can also apply, but must be willing to personally guarantee the loan.
The work can’t go on indefinitely. It must be finished within nine months and meet Section 8 Housing Quality Standards when it’s done.
What a great way to make those improvements you’ve been putting off!