MHFA Emergency Rehabilitation Loan

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Minnesota Housing has made funds available to compliment loan programs to fill the financial gap that exists for low-income homeowners. 

The guidelines below are subject to change at any time without notice. Loan funds are subject to availability.

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Application Instructions

Application   Homeowner Agreement

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Definition of Emergency:

An emergency is defined as a condition that makes a house uninhabitable, extremely dangerous to the occupants, or is capable of causing severe health problems.

About the Loan

  • No monthly payment.
  • Loan amounts from $1,000 to $15,000.
  • Term of 15 years.
  • Financing available for 100% of project costs.
  • No prepayment penalty.
  • Closing costs apply.

Property Eligibility

  • 1-2 unit, owner-occupied residential properties located in one of the following counties: Anoka, Carver, Dakota, Hennepin, Ramsey, Scott and Washington, Sherburne and Stearns.
  • Condos, townhomes, and manufactured homes are eligible. 
  • Total assets of all residents in the household may not exceed $25,000.
  • Gross annual household income cannot exceed 30% AMI.
  • Loan approval is subject to credit and program guidelines.

Loan Details

  • This loan is secured by a mortgage on your property.
  • The loan is 100% forgiven if the property is owned and occupied by the borrower(s) for 15 years.
  • Closing costs apply.
  • Income limits. 
  • Eligible projects will be determined by a property inspection.
  • Eligible projects include improvements that directly affect the safety, habitability, livability, or energy efficiency of the home or replacement of Manufactured Homes.
  • 2 bids are required from properly licensed contractors for all projects. 
  • For do-it-yourself projects, a materials list including prices is required.  The cost for labor and equipment purchase or rental may not be included in the loan.
  • 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.  

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).

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