Burnsville Senior Deferred Home Improvement Loan
The City of Burnsville’s Economic Development Authority is making funds available for senior residents to make home improvements.
The guidelines below are subject to change at any time without notice. Loan funds are subject to availability. Email or call for complete details.
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About the Loan
- 2% (2.134% APR)*
- Income limits apply. See loan terms for details.
- No monthly payments.
- Loan amounts from $5,000 to $15,000.
- Term is 30 years.
* APR is based on $15,000 for 30 years.
Property Eligibility
- 1–4 unit, owner-occupied properties located in the City of Burnsville.
- Condominiums and townhomes are eligible.
- The property must be homesteaded or in the process of being homesteaded.
- Properties under construction or held in a Trust are not eligible.
- At least one borrower must be at least 65 years of age.
- A property inspection and home energy audit must be done to determine eligible use of funds.
Loan Details
- Annual household income cannot exceed 100% of the area median income (AMI) based on household size, as determined by the U.S. Department of Housing and Urban Development.
- Income will be determined by the adjusted gross income from the most recent federal tax return. The loan is deferred for 30 years or until the borrower sells, transfers the title, or no longer occupies the property.
- If, after 30 years, the borrower has not sold or transferred the title and still occupies the property, the loan is 100% forgiven.
- Loan approval is subject to credit and program guidelines.
- Loan is secured by a mortgage on the property.
- Closing costs apply.
- All work must be completed within 120 days of closing.
- Most permanent interior and exterior improvements, maintenance, or remodeling projects are eligible. Eligible improvements must be determined by an analysis of the property by a CEE representative and a home energy audit.
- Funds may not be used for common area improvements, work initiated prior to closing (except in emergencies), recreation or luxury projects, or non-permanent appliances (unless part of a kitchen remodel).
- One (1) bid is required from a properly licensed or registered contractor with the Minnesota Department of Labor.
- Please contact your City inspections department to verify if your project requires a permit. If you are hiring a contractor to do the work and it requires a permit, the contractor should pull the permit.
- Funds are held in a non-interest-bearing escrow account at CEE from loan closing until the work is completed and all final documentation is received.
- Our experience has shown that big box stores are not willing to be paid on completion, which is a requirement for this program.
The current loan terms and conditions stated, including interest rates, do not constitute a commitment to lend or an offer to enter into an agreement, and that such an offer may only be made pursuant to Minnesota Statutes, Section 47.206(3) and (4).
Browse More Burnsville Loans
Thanks to Burnsville's partnership with CEE, we offer additional loan programs for Burnsville residents.
Not sure what program works for you? Contact us.