 Rehabilitation Loan Program and Emergency & Accessibility Loan Program Procedural Manuals Revisions; Program Changes
The Minnesota Housing Board of Directors has approved revisions to the Rehabilitation Loan Program (RLP) and Emergency and Accessibility Loan Program (ELP) Procedural Manuals. Revisions include program and process changes. The changes are effective for all loans locked on or after August 1, 2022.
Substantive changes include:
- Revising language to allow lenders to verify a borrower’s income and assets within 12 months of the loan closing. Borrowers will be required to execute a Borrower Attestation within ten (10) days of the loan closing attesting that there have not been any substantial changes to the borrower’s income or assets. If the lender closes the loan 12 months or later after borrower application, the lender must reverify the income and assets.
- Revising language to allow lenders to use their own documents in some cases.
- Adding language to allow homes on tribal trust lands as an eligible ownership interest type.
- Adding language to allow projects to be completed within 12 months of loan closing.
- Revising language to refer lenders to the Income Calculation Worksheet for guidance regarding the information that is needed when calculating a borrower’s gross annual household income.
- Adding language clarifying that a borrower’s credit history outside of their mortgage(s) should not be used to determine the borrower’s eligibility, and the borrower must be current on all liens against the subject property.
- Adding a new section to the Procedural Manual for Other Eligible Costs.
Rehabilitation Loan Program Lender Training Webinar
Minnesota Housing will host a virtual training on Thursday, August 4, 2022, from 1:00 – 3:00 p.m. regarding the above changes. We will also allow time for lenders to ask questions and share information. Please click here to register for the training.
At least one person from your organization involved in processing RLP and ELP loans is required to attend the training.
Reminder - We Want to Know What You Think: Rehabilitation Loan/Emergency and Accessibility Loan Programs (RLP/ELP) Lender Survey
We continually evaluate the effectiveness of RLP and ELP to see if there are opportunities to improve the lender experience and serve borrowers better. We value your opinions and invite you to take the RLP/ELP lender survey to share your thoughts. We will use your feedback to help improve the programs and processes.
The survey should take about 15 minutes to complete, and will close on Sunday, July 31, 2022.
Questions?
Contact the RLP/ELP Team at RLP.ELP@state.mn.us or 651.296.8215.
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