Coon Rapids: Down payment Assistance Program Passes

Coon Rapids: Down payment Assistance Program Passes

The Coon Rapids City Council voted unanimously to approve a Coon Rapids Mortgage Assistance Foundation recommendation for a new down payment assistance loan program.

Hats off to Coon Rapids Mortgage Assistance Foundation Board of Directors: Lyle Haney, Donna Naeve, Brad Crandall, Scott Schulte, Lonni McCauley, Tim Howe, and our own James Stanton, Shamrock Development and current President of North Metro REALTORS® Association. This program will rehabilitate housing stock and provide incentives for homebuyers to purchase and occupy a home in Coon Rapids as their principal residence.

So what are the details? Coon Rapids Mortgage Assistance Foundation (CRMAF) has allocated a total pool of $300,000 to be available for down payment assistance loans. The funds will be administered directly by Cheryl Bennett, CRMAF staff. The funds are provided in the form of a second mortgage. No payments are required; no interest is assessed unless the loan is repaid within the first three years after closing. The repayment is prorated between years 4-10 and is forgiven after 10 years. Loans are reserved for down payment assistance only at 3.5% of acquisition costs up to $6,000. Funds must be used in conjunction with an FHA 203K mortgage to purchase a single family detached property (within the city of Coon Rapids) with at least $10,000 in repairs. Rehab or renovation work must be completed by a state licensed contractor and work completed within six months of closing. The borrower must occupy the property as their principal homesteaded residence. There are no income requirements. Buyers need not be first time homebuyers. The loan is available for all properties and not foreclosures only.

REALTORS® are encouraged to learn more about this program and utilize it. More information including public announcements, public forums, and a REALTORS® forum to roll out program details are forthcoming.

More information contact, Eric J Myers, Government Affairs Director, NMRA