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Home Improvement Loans for Minnesota Homeowners

Minnesota Housing offers two financing programs for homeowners looking to make improvements on their homes:
Fix-up Fund 
Rehabilitation Loan Program 

Fix-up Fund

The Fix-up Fund is a statewide program that offers affordable, low-interest fixed rate home improvement loans. 


Eligibility Requirements

• Household income at or below $96,500 (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 to 20 years based on the 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
new furnance	central air conditioning
electrical wiring	new roof
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 Home Improvements Include

swimming pools	hot tubs
gazebos	recreational or entertainment facilities
reimbursing or refinancing for improvements already done	mobile homes not on a permanent foundation and not taxed and financed as real property

Ready to Get a Loan?
 

3. Your lender will help you apply and work with you to complete the loan
    process and close your loan.

• When is a contractor license required?

      Minnesota Department of Labor and Industry

• Citizens Guide to Home Building and Remodeling

      Office of Minnesota Attorney General

• Statutory warranty for Home Improvements

      372A.02, subd.3 Home Improvement warranties

Other Resources

Energy Saving Home Improvements
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

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 2011 income limits:

Size of Household	2012 Income Limits
1 Person	$17,700
2 Persons	$20,200
3 Persons	$22,700
4 Persons	$25,200
5 Persons	$27,100
6 Persons	$29,100
7 Persons	$31,300
8 Persons	$33,300

Loan Features

• Maximum loan amount is $27,000
• 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
  • an eligible one-unit dwelling in an eligible Planned Unit Development (PUD)
  • townhomes
  • a condominium unit
  • duplexes
  • 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.

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