Qualifications

• Max Purchase Price allowed is 500K. 

• Loan amount (25K – 50K) and interest (4% or 6%) vary with household income. 

• Term = 30 years max

• Second lien position & title insurance required on all loan amounts.

• No loan fees will be built into the loan amount. Borrower to pay the loan fees at closing

• Homebuyer education from CDLI is required

• Loan disbursement at closing., if down payment

• At least 51% of the loan must be used for repairs. 

• Loan fees:

  • $120 application fee

  • $125 processing fee

  • 1% origination fee

  • 10% supervision fee calculated on the basis of the total construction/rehabilitation amount

• Applicant can be under contract before applying for the loan 

• A signed contract with the winning contractor is required

• Bidding process managed by CDLI