Thornton Home Repair Loan Program

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1 OVERVIEW Homeowners who live in Thornton may be eligible for a 0% interest rate loan to pay for larger repairs needed on their home. This loan program, offered through the City of Thornton and Brothers Redevelopment*, seeks to help homeowners make health and safety repairs to their home that tend to be costly. Homeowners must fall within certain income levels to be eligible for the program. Loan amounts are limited to a minimum of $5,000 and a maximum of $20,000 per household and per property. Some examples of eligible repairs include: Repair or replacement of water or sewer lines on the resident s property Replacement of roofs and gutters Major plumbing, electrical, or mechanical repairs Accessibility solutions, such as ramps or retrofitting a bathroom Correcting structural problems Some types of work are not eligible per the federal guidelines that direct this program, such as remodeling rooms, installing air conditioning units, landscaping, repairing or installing retaining walls or fencing. In addition, the program is intended to cover the entire cost of projects and will not supplement work being done or paid for through other means. For example the loan will not pay insurance deductibles, or reimburse the homeowner for work that has already been completed. Am I Eligible to Apply? Applicants must meet all the following criteria and provide proof of their eligibility: You must own and live in your home at the time of application and throughout the life of the loan. Your home must be located in Thornton and be a single-family home, townhome, or condominium. You must be current on your mortgage payments and have homeowners insurance. You must be able to make regular monthly loan payments until it is paid off (up to 10 years). You must be able to make a down payment contribution equal to 5% of the total loan amount. You must be a legal U.S. resident. You cannot have a bankruptcy discharged within the past 12 months, or currently be in a Chapter 13 bankruptcy repayment plan. You cannot have more than $20,000 in assets; this does not include your primary residence, vehicles, or pensions. You cannot have a home equity line of credit (HELOC) or reverse mortgage. Based on the number of people living in your home, the total annual household income cannot be more than: Person Persons Persons Persons Persons Persons Persons Persons $44,750 $51,150 $57,550 $63,900 $69,050 $74,150 $79,250 $84,350 *Brothers Redevelopment is a Denver-based nonprofit organization that has provided housing and housing-related services for the region s low-income, elderly and disabled residents since 1971.

2 PROCESS The full application, approval and construction process can take two to three months to complete. 1. Submit a preliminary application and required documents to the City of Thornton. After all materials are submitted and City staff verify your eligibility, you will receive a letter letting you know whether you are eligible to participate in the program. If eligible, the City will forward your application and all documentation to Brothers Redevelopment. 2. Brothers Redevelopment staff will contact you to set up a financial consultation and a home repair inspection. Staff from Brothers will schedule an appointment with you to review your financial information for the loan. A housing finance counselor who is certified by the U.S. Department of Housing and Urban Development will sit down with you to review your income and expenses in order to determine the amount of loan you may be eligible for and discuss loan options. Also, staff from Brothers Redevelopment will schedule a time to inspect your home to determine the type and cost of repairs that are needed and what is eligible for this program. 3. You will be notified if your loan has been approved. All the information gathered in the first two steps will be used to determine if you meet the financial and program requirements of the Thornton Home Repair Loan program. If approved, you will have three (3) business days to decide if you want to pursue the loan and submit a $75 non-refundable loan application fee. This fee will be credited towards the closing cost fee if and when the loan closes. You will also receive a letter informing you of the next step in the process or if any items need to be addressed (such as outstanding liens or code violations on the property) before a loan can be finalized. 4. You will work with Brothers Redevelopment to identify a contractor. If the loan is approved, you and the Brothers Redevelopment Construction Manager will get cost estimates for the approved work from a pool of pre-qualified contractors and then select the lowest bid and most qualified contractor. 5. Before work can begin, you will sign the loan and construction documents. Once a contractor has been selected and you have accepted your loan amount and conditions, your loan documents will be prepared, explained, and presented to you. Anyone that is on the mortgage must sign off on the loan. There will be a loan closing cost fee of $500 that will be included as part of your loan. You will be responsible for paying 5% of the total loan amount as a down payment, out of your own pocket. An agreement between you, Brothers Redevelopment, and the contractor will also be signed and repair work will be scheduled. 6. The repair(s) will be completed on your home. The Brothers Redevelopment Construction Manager will oversee the repair work and ensure the work is done correctly and meets the City building code. Once you have approved the work that was completed, Brothers Redevelopment will pay the contractor directly from your loan. 7. You will begin making loan payments once the work is complete. You will be required to make monthly payments on your loan until the entire amount is paid off. Also, every year you are making payments on the loan you will be sent a form from Brothers Redevelopment to ask you to confirm that that you still own and live in the home. Please Keep These Pages for Your Records

3 APPLICATION CHECKLIST The following information is required in order to determine whether you pre-qualify for the Thornton Home Repair Loan program. The application and supporting documentation will be viewed by those that administer these programs. Certain information, such as bank account numbers or social security numbers, will be obscured from this document prior to review. Application Checklist Please complete this checklist and submit all items listed below to the City of Thornton. Completed application form. Certification and Indemnification sheet and Immigration Affidavit (attached to this application) signed and dated by the homeowner(s). Copy of driver s license or state issued photo identification of homeowner(s). Income verification for each member of the household that is 18 years or older (submit all that are applicable): Most current federal tax return(s) - last two (2) years needed for self-employed applicants Two (2) most current consecutive pay stubs Current award letters for any government assistance received (Social Security, disability, etc.) Most recent statement for any retirement savings distributions (i.e. IRA, pension), showing total year to date disbursements Copies of paperwork verifying child support or alimony received Copy of most recent mortgage statement indicating payments are current and there is no outstanding balance. If the home is paid off, provide a copy of the release of deed of trust. Most recent homeowners insurance statement. Proof of assets. This includes but is not limited to (submit all that are applicable): Two (2) most recent checking and/or savings account bank statements Two (2) most recent investment account statements Property description/mortgage statement or title of any other property you own other than your primary residence Name and value of business(es) owned and operated Complete applications can be: MAILED TO: FAXED TO: DELIVERED IN PERSON TO: City of Thornton Attn: Home Repair Loan Program 9500 Civic Center Drive Thornton, CO City of Thornton Attn: Home Repair Loan Program City of Thornton, City Development (Planning front counter, one-story building behind City Hall) 9500 Civic Center Drive Thornton, CO Questions? Please call the Neighborhood Services Division at

4 Applicant Information Legal name of applicant(s): Property address: PRELIMINARY APPLICATION FOR ASSISTANCE Home phone #: Alternative phone #: address: List all occupants living at this address, including you, co-applicant and any other adults or children. Name Birth Date Employed? Files IRS Tax Return? Applicant Yes No Yes No Co-Applicant Yes No Yes No Other Occupant Yes No Yes No Other Occupant Yes No Yes No Other Occupant Yes No Yes No Is there anyone on the title to the property who does not live there? YES NO If yes, provide the name of person(s) on title and an explanation of why that person does not live in the home: Home Information What type of home do you have? Single-family/duplex Townhome Condominium Do you live in a Home Owners Association (HOA) community? YES NO Do you currently have homeowners insurance? YES NO Have you contacted your insurance company to see if any of the repairs could be covered through your insurance? YES NO If YES, what was the result? Do you have a reverse mortgage on the home? YES NO Do you have a home equity line of credit (HELOC)? YES NO Do you intend to sell your home or transfer the title of your home within the next ten years? YES NO What major health, safety, or accessibility repairs does your home need (in order of priority)? FOR INTERNAL USE ONLY Date application received: Date application completed: Date application sent to BRI: Household size: Annual household income: Previous Help for Homes applicant? 2

5 Financial and Asset Information List the total monthly income of all household members. Please note that documentation must be provided for all sources of household income listed below. Type of Income (monthly) Total for All Household Members Applicant Co-Applicant Other Employment 1 $ $ $ Employment 2 $ $ $ Unemployment $ $ $ Social Security Retirement Insurance $ $ $ Social Security Disability Insurance (SSDI) $ $ $ Retirement/Pension $ $ $ Child Support/Alimony Received $ $ $ Other: $ $ $ List any 401(k), 403(b), or 457(b) payments withdrawn in the last year: $ Do you have a bankruptcy discharged within the past 12 months, or are you currently in a Chapter 13 bankruptcy repayment plan? YES NO Answer the following questions regarding assets. If you answer Yes to any of the questions, include corresponding documentation with your application. Do you have a checking account? YES NO Do you have a savings account? YES NO Do you have other cash savings (not including cash in a bank account)? YES NO If YES, what is the amount: $ Do you own rental property or land (other than the home on this application)? YES NO Do you own stocks, bonds, or other investments (not including retirement accounts)? YES NO Do you have any other investments or assets? YES NO Please explain: Household Information (optional) This information is used by the City of Thornton to track the demographics of program participants. What is your ethnicity (optional)? Hispanic Non-Hispanic What is your race (optional)? White/Caucasian Asian African American American Indian/Alaskan Native Hawaiian Other Is anyone in the home disabled (optional)*? YES NO Are you a female head of household (optional)? YES NO Are you, or is anyone living in your home a veteran (optional)? YES NO How did you hear about the Home Repair Loan Program? *Note: No information should be provided that describes either the nature or extent of the disability. 3

6 Certification and Indemnification Applicant s Certifications I/we, the applicant(s), hereby certify that I am/we are the owner-occupant(s) of the property to be repaired and that the property is my/our principal residence. Also, I/we certify that all information provided in this application, including the income information, is true and correct to the best of my/our knowledge and belief. I/we understand that any discrepancy or omission in the information provided may disqualify me/us from participation in the Home Repair Loan Program. Indemnification I/we hereby agree to indemnify and hold harmless the City of Thornton, its officers, agents, employees and sub-grantees for the Home Repair Loan Program against all liabilities, judgments, costs, and expenses arising out of, or in consequence of, housing rehabilitation or repairs provided as part of this Home Repair Loan Program. Applicant Signature Date Co-Applicant Signature Date 4

7 AFFIDAVIT I,, swear or affirm under penalty of perjury under the laws of the State of Colorado that (check one): I am a United States citizen, or I am a Permanent Resident of the United States, or I am lawfully present in the United States pursuant to Federal Law. I understand that this sworn statement is required by law because I have applied for a public benefit. I understand that state law requires me to provide proof that I am lawfully present in the United States prior to receipt of this public benefit. I further acknowledge that making a false, fictitious, or fraudulent statement or representation in this sworn affidavit is punishable under the criminal laws of Colorado as perjury in the second degree under Colorado Revised Statute and it shall constitute a separate criminal offense each time a public benefit is fraudulently received. Signature Date 5