Housing Solutions for the Southwest is pleased to announce that the Colorado Department of Local Affairs, Division of Housing approved a request for additional funding this week for Housing Solutions to expand our low-interest loan program for homeowners in southwest Colorado.
Housing Solutions has been giving loans for home repairs in the community for 29 years. In the next grant cycle, Housing Solutions will provide loans to rehabilitate a significantly larger number of families, up to 25 homes. Low to moderate income individuals or families can apply. We are accepting applications immediately for the program.
The goal of this program is to provide an option to homeowners who are on fixed or moderate incomes to make necessary repairs when the family would not otherwise be able to pay for or borrow the money from their own banks to do so. It is important to make necessary repairs and keep up the maintenance on homes to ensure the health and safety of families. It is also essential to maintaining the value of your home, which is often the largest asset a family has.
Christina Cordalis, rehabilitation program manager, states that, “I sleep at night knowing that this program makes a difference so that families are able to live in safe and warm homes.”
The process is very similar to applying for a loan with a local bank, except it is much easier to qualify and the interest rate and payments are much lower. The homeowner must have income below the qualification guidelines set by the state, which varies depending on family size and which county you live in. You must also have equity in your home, meaning that you owe less money than your home is worth. Homes of any age and manufactured homes built after 1978 can qualify. A lien is put on the home in the amount of the loan and this is the collateral used to guarantee the loan.
The way the program works is that Housing Solutions conducts an inspection of the home and makes recommendations to the homeowner about what repairs are necessary. A work plan, including cost estimates, are completed. Housing Solutions can loan up to $24,999 for each home for qualified repairs. Eligible repairs include fixing leaky roofs, faulty electrical systems, faulty plumbing systems, inadequate heating systems, well/pump troubles, septic/sewer troubles, exterior siding rotting, interior walls cracking, crumbling foundations, sagging floors, etc. A loan committee reviews the loan for approval and determines an affordable payment schedule based on income. After the loan is approved, a bid is put out to local, qualified and approved contractors. Once a contractor is selected, the work is scheduled on the contractor’s calendar.
To see if you are eligible, contact Christina Cordalis at 259-1086, Ext.17.