Our muni has a housing rehab grant and loan program for owner-occupied single family residences. Maximum grant amount of $20K; max loan is $5K.
Our eligibility requirements for this program are:
- Location: must be in one of our two target areas
- Income eligibility: Household at or below 80% of the MHI for our MSA
- Property Condition: must be considered substandard by our definitions, and brought up to at least Section 8 HQS after rehab
- Property value limitations: After rehab value myust not excell ethe FHA 203b mortgage amound for the area and type of property.
A property we just approved for participation this summer with work recently completed is being foreclosed on by the mortgage lender. An auto finance company also wants a piece of the owner for another unpaid loan.
- Should we consider adding a minimum acceptable credit score as an eligibility requirement? (Just because a household is LMI does not necessarily mean bad credit history.) Or,
- Should I just accept that !@#$ happens, and wait to see if other recipients follow suit before making changes?