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Home Improvement Loans for Minnesota Homeowners
Fix-up Fund
The Fix-up Fund is a statewide program that offers affordable, low-interest fixed rate home improvement loans. Now, Fix-up Fund borrowers who complete eligible energy-saving home improvements may qualify for an Energy Saver Rebate. To be eligible for the Energy Saver Rebate, homeowners must secure financing with a Minnesota Housing Fix-up Fund loan.
- Household income at or below $96,500 (the income limit may be waived if the improvements are being made for the accessibility of a family member with a disability)
- Property must be owner-occupied
- Single family homes, duplexes, triplexes or four-plexes are eligible
Loan Features
- Hire a contractor or do the work yourself.
- Maximum loan term of 10 or 20 years based on loan amount.
- Loan amounts from $2,000 to $35,000
- A higher loan amount may be available if the improvements are being made for the accessibility of a family member with a disability.
Eligible Home Improvements with the Fix-up Fund
Most improvements to the accessibility or energy efficiency of a home, or general repairs are eligible, such as:
- windows
- insulation
- a new furnace
- central air conditioning
- electrical wiring
- a new roof
- a garage
- septic repairs
In addition to energy-saving upgrades, homeowners may also finance renewable energy improvements. These include solar thermal, solar electric and wind turbines/generators.
Ineligible improvements
Swimming pools, hot tubs, gazebos and other recreational or entertainment facilities. Mobile homes are not eligible to receive Fix-up Fund financing unless they are fixed on a permanent foundation and taxed and financed as real property.
Energy Saver Rebate Powered by the Fix-up Fund
Fix-up Fund borrowers who complete eligible energy saving home improvements with their loan proceeds may be eligible for a rebate equal to 35% of the cost of the eligible improvements that were financed with a Fix-up Fund loan, up to a maximum of $10,000. There is a limit of one Energy Saver Rebate per household.
- Replacement furnaces, boilers, and central air conditioners that are eligible for Federal Energy Tax Credit
- Replacement exterior doors that are eligible for Federal Energy Tax Credit
- Energy Star replacement windows
- Energy Star light fixtures
- Attic air sealing
- Wall and attic insulation in conjunction with attic air sealing
- Water heaters if “orphaned” due to furnace replacement
Next Steps
- Read the Energy Saver Rebate Information to become familiar with all eligibility criteria
- Contact a Fix-up Fund lender participating in the Energy Saver Rebate program and apply for Fix-up Fund loan (check back weekly for lender list updates):
- Print out the Energy Saver Rebate Application and work with contractor(s) to obtain bids/estimates for rebate-eligible improvements
- Close Fix-up Fund loan with participating lender, use proceeds to perform agreed-upon improvements, then submit Energy Saver Rebate Application to your participating Fix-up Fund lender
- Resources for Rebate Eligible Improvements
- Energy Saver Rebates are not retroactive. Fix-up Fund loans associated with Energy Saver Rebates cannot close prior to December 7, 2009.
This project is made possible by a grant from the U.S. Department of Energy and the Minnesota Department of Commerce.
Rehabilitation Loan Program
The Rehabilitation Loan Program assists low income homeowners in financing basic home improvements that directly affect the safety, habitability, energy efficiency or accessibility of their homes.
Eligibility Requirements for a Rehabilitation Loan Program Loan
- owner occupies the property to be rehabilitated;
- owner does not have assets that exceed $25,000;
- owner meets the following income limits:
| Size of Household | Income Limits |
| 1 Person | $17,700 |
| 2 Persons | $20,200 |
| 3 Persons | $22,700 |
| 4 Persons | $25,200 |
| 5 Persons | $27,200 |
| 6 Persons | $29,200 |
| 7 Persons | $31,300 |
| 8 Persons | $33,300 |
Loan Features
- Maximum loan amount is $24,999 (an additional $10,000 may be added to satisfy any necessary lead-based paint hazard reduction requirements)
- Maximum loan term is 15 years for properties taxed as real property and 10 years for mobile/manufactured homes taxed as personal property located in a mobile home park.
- Can be used for rehabilitation of single-family homes, townhomes and condominiums constructed after January 1, 1978, and manufactured housing taxed as real or personal property.
- All loans are forgiven if the borrower does not sell, transfer title, or ceases to occupy the property during the loan term.
Eligible Home Improvements
Basic improvements to the livability, accessibility, energy efficiency and addressing lead paint hazards are eligible. Electrical wiring, furnace replacement, plumbing and septic repairs are just some of the possible repairs.
Find a Lender
Minnesota Housing works with Lending Partners around the state to bring the Rehabilitation Loan Program to you.
Resources
For ideas and answers about energy-saving improvements that can lower your utility bills, contact the Office of Energy Security via the web at: www.energy.mn.gov, or by contacting 1-800-657-3710 or 651-296-5175.
Lead Based Paint Information
If your home was built before 1978, you should take precautions to address lead based paint hazards that may arise with home remodeling work. Check with any contractors you hire to make sure that they are qualified and use lead-safe work practices. If you plan to do work yourself, you should seek guidance on lead-safe improvement practices. Information is available at these websites:
- Minnesota Deptartment of Health
- U.S. Department of Housing & Urban Development
- Sustainable Resources Center
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