The borrower must spend at least 25% of their gross income on housing (first mortgage, PITI, etc.)
The term for this loan is identical to the term of the first mortgage loan.
Option 1: Same as the 1st mortgage loan interest.
Option 2: A% share in the appreciation - never to exceed 5% simple interest.
Option 1: Monthly payments of interest only. Principal due upon sale, refinance or maturity of the 1st mortgage.
Option 2: Defer all payments until sale, refinance or maturity of the 1st mortgage loan. Payments won't exceed the principal loan amount plus a share of the appreciation (not to exceed 5% per year simple interest).
The loan will be secured by a subordinate mortgage on the property.
The subordinate loan is assumable with the approval of the East Edina Housing Foundation.
The purchase price is not more than $350,000.
Borrower shall pay not less than $1,000 towards down payment, closing costs and/or prepaid expenses.