I. HOMESTEAD OPPORTUNITY LOAN (CDBG)

Designed to assist qualified Low and Moderate Income (LMI), first-time homebuyers with the purchase of a home in the City of Manitowoc. Program loan funds are used for funding improvements to substandard and/or vacant homes presently available for sale. Loans can be made directly to either qualified homebuyers, or to current property owners whose property is available for sale.

a. Loan Amount and Terms.A maximum $10,000 loan is available through the program. Funds are provided in the form of a 0%, deferred payment loan for 100% of project costs. Loan is repaid when borrower sells, transfers or conveys any interest in the property.

b. Security. Loan is secured by a mortgage against the borrower's residence.

2. DOWNPAYMENT/CLOSING COST ASSISTANCE (HOME).

Program provides qualified LMI, first-time homebuyers with funds for downpayment, closing costs, and buy-down of interest rates on home mortgage loans for properties in the City of Manitowoc.

a. Loan Amount and Terms.A maximum $2,500 loan is available through the program.Funds are provided in the form of a 0%, deferred payment loan for qualified downpayment or closing costs. Loan is repaid when borrower sells, transfers or conveys any interest in the property.

b. Security.Loan is secured by a mortgage against the borrower's residence.

GENERAL OWNER OCCUPANT REHAB PROGRAMS

1. OWNER OCCUPANT REHABILITION LOANS

a. Loan Amount and Terms. A maximum $8,500 loan is available through the program. Funds are provided in the form of a 0%, deferred payment loan for 100% of project costs. Loan is repaid when borrower sells, transfers or conveys any interest in the property.
b. Security.Loan is secured by a mortgage against the borrower's residence.

2. HANDICAP ACCESSIBILITY REHABILITATION LOANS.

Program is designed to assist owner occupied homes in the city for improvements needed to make homes barrier-free, and more accessible and usable to the special needs of handicapped occupants.
a. Loan Amount and Terms.A maximum $10,000 loan is available through the program. Funds are provided in the form of a 0%, deferred payment loan for 100% of project costs. Loan is repaid when borrower sells, transfers or conveys any interest in the property.

b. Security.Loan is secured by a mortgage against the borrower's residence.

ELIGIBILITY REQUIREMENTS

1. UNDER THE FIRST-TIME HOMEBUYER PROGRAMS:

a. Borrower or borrower's spouse may not have an ownership interest in a principal residence at any time during the 24 months immediately preceeding the date on which the City loan is closed

2. UNDER THE OWNER, & HANDICAP PROGRAMS:

a. Borrower must be an owner occupant, or land contract buyer of property,and occupy the property on a year-round basis as their principal residence. In the case of a land contract, the seller must join the buyer in signing the program mortgage. Borrower must have at least a 50% ownership interest in the property.

b. Borrower must have owned and occupied the unit for at least 3 months prior to applying for a City loan.

2008 FAMILY HOUSEHOLD INCOME REQUIREMENTS:

a. Total household income shall not exceed the current income limits representing 80% of Manitowoc County median income:

b. To calculate household income, current income is projected forward for 12 months.

IV. ELIGIBLE/INELIGIBLE WORK

1. Eligible improvements include any permanent additions, alterations or repairs which are physically attached to the property, permanent in nature, and necessary to maintain the housing unit in decent, safe and sanitary condition; required to bring the unit into compliance with local housing codes; weatherization done in conjunction with other rehabilitation improvements; exterior painting and other siding maintenance or replacement; adapting a residence for use by a handicapped person; improvements to a mobile or manufactured home where the structure is classified as real property for real estate purposes.

2. Ineligible work includes activities completed, begun or contracted for prior to receiving City loan approval; new construction, non-permanent improvements, landscaping, and improvements deemed to be "luxury" improvements.

3. Rehabilitation improvements are not eligible under the city's Downpayment/Closing Cost Program.

V. APPLICATIONS/INFORMATION

Additional information and applications for these programs are available at: