We talk a lot about
weatherization as a way to improve your home’s quality, but there are other
options out there. Neighborhood Housing Services of South Buffalo also offers a
home rehab loan program!
The home rehab loan
program is only available to our South Buffalo constituents (the South District is defined as south of the Buffalo
River, situated within the municipal boundaries). This program is especially intended for major systems of
the house (roof, heating, electrical, plumbing, etc.) and fixing code
violations. Loan money will be used for code violations first, then major
systems. It cannot be used for cosmetic projects such as
putting in carpet or replacing linoleum tiles. There are various types of
loans: fully amortized loans using various interest rates and terms, NHS of
South Buffalo loan combined with a loan and/or grant from a public agency, and
also any combination of the preceding. This program is called a "revolving loan" because the loan
payments all go right back into the loan fund and create the possibility for
even more loans. So the money goes out and comes right back in, like a
revolving door.
To be
eligible for the home rehab program, you must earn less than 80% of the area
median income.
|
Household
Size
|
1
|
2
|
3
|
4
|
5
|
|
Annual
Income Limit
|
$35,700
|
$40,800
|
$45,900
|
$50,950
|
$55,050
|
The building must be owner occupied, typically
1-4 family properties. All loans exceeding $1,000 shall be secured by a
mortgage. The maximum amount of the owner’s mortgage can’t exceed $15,000 and
the term cannot exceed 30 years. The maximum term of the loan is 120 months (10
years). The interest rate will be calculated on a simple interest, periodic
basis, ranging from 1% to the market rate. There is a $300 application fee
charged once you qualify for the loan. Once qualified, the loan must still be
approved by the loan committee. Loan funds and outstanding mortgages combined
cannot exceed 80% of the assessed value of the house. Homeowners may apply for
loans as needed. There is no maximum to how many times you may receive loans.
For more information, contact our loan officer! You
can reach Pamela Tait-Kwiatkowski at our South Park office (716) 823-3630, ext.
109.
