Minneapolis Home Improvement Programs
The following City of Minneapolis owner occupied home improvement loan programs are available.
Rehab Support Program (RSP)
The Rehab Support Program in partnership with the City of Minneapolis and Minnesota Housing offers the Fix Up Loan at 2% interest) with a maximum loan of $30,000 (2.144% APR based on $30,000 loan) to 43 select neighborhoods (link to map). The goal of the Rehab Support Program is to encourage households to complete improvements to their homes that will increase the home’s value while addressing health, safety, and housing code violations.
The Rehab Support Program is currently closed for new applications. If you would like to be notified when applications become available, please register your request here. RSP Notification Request
Fix Up Loan Program
Homeowners can choose from flexible affordable financing options to finance home improvements that they want. Borrower(s) income must be less than $141,000.
- Loan amounts from $2,000 to $30,000 with repayment terms up to 20 years and no prepayment penalty
- Affordable, fixed interest rates. Interest rates are based on different factors such as; if you have an existing mortgage, the proposed loan repayment term based, and type of improvements to be completed. Interest rates are subject to change, see Minnesota Housing’s website for current rates.
- Lower rates for eligible energy efficiency and accessibility improvements
- Secured and unsecured loan options with higher loan-to-value ratio on secured loans than traditional loan products
- Loan amount is based on Contractor estimates provided. Homeowner labor is not eligible. Homeowner Labor is eligible though other Minnesota Housing Lenders.
City of Minneapolis is limiting it's offering of Minnesota Housing's Fix Up Loan to a maximum loan of $30,000 and no homeowner labor (sweat equity) projects. This loan product is available through other lenders utilizing the program's maximum loan amount of $50,000. Maximum amount of outstanding Fix Up Loans is $50,000.
Rehabilitation Loan Program
Deferred loan financing is available to eligible low-income homeowners who are unable to secure home improvement financing in the private sector. Funds may be used for basic home improvements that directly affect the home’s safety, habitability or energy efficiency by addressing health & safety repairs, housing code violations, radon and lead remediation. The program offers a $27,000 deferred loan that is forgiven after 15 years.
The City of Minneapolis waiting list for this program is currently closed but the program is still available statewide. For assistance in locating a program lender, please contact Minnesota Housing Finance Agency at (651) 296-7608.
For individuals who have already registered with the city for program participation, staff will contact you as we progress through the list.
If you would like to be notified when applications become available, please register your request here. RLP Notification Request
Emergency Loan Program
Emergency loans are funding of last resort for when no other financing options are available.
Eligible improvements include but not limited to repairs to a property damaged because of events beyond the Borrower’s control or as necessitated by a systems or structural failure such as:
- Failure of the heating, electrical, ventilation, or plumbing/septic system;
- Roof leaks that have led to significant secondary damage to the home’s interior,
- Electrical damage that would cause a potential fire hazard;
- A structural failure of the foundation, walls, or roof of the home that could cause collapse;
- An Environmental Intervention Blood Lead Level (EIBLL) of a household resident; or
- An accessibility need that prevents a Disabled Household Resident from inhabiting the home.
- Other emergency conditions that could cause the home to be or become uninhabitable will be considered by Minneapolis CPED staff on a case-by-case basis.
Applicants are first screened for basic program eligibility. If eligible, an application for the appropriate program will be provided.
Funding options are:
Emergency Home Improvement Program (HIP) - a deferred loan, requiring no payments no interest with the entire loan due in 30 years, household income must be less than the amount stated in the income chart below for the HIP Program.
Minnesota Housing Emergency Loan Program (ELP) - a forgivable loan requiring no payments no interest that is forgiven with no obligation to repay after 15 years.
To submit your emergency for consideration, please see contact information below and provided:
- Brief summary of your emergency
- Interior and / or exterior photos of the damage
- Contractor estimates (if any)
Home Improvement Program (HIP)
HIP program provides a 30-year deferred loan up to $25,000 and a $10,000 grant to address basic home improvements that directly affect the home’s safety, habitability or energy efficiency by addressing health & safety repairs, housing code violations, and lead remediation.
The waiting list for the HIP program is currently closed.
For individuals who have already registered for program participation, staff will contact you as we progress through the list.
If you would like to be notified when applications become available, please register your request here. HIP Notification Request
Household income** is defined as gross income, before any deductions, from all members of the household over the age of 18 from all sources.
Rehabilitation Loan Program (RLP) and Emergency Loan Program (ELP) income limits are posted on Minnesota Housing's website.
Other Community Based Home Improvement Resources
Finding home improvement resources that meet your needs depends on many factors. When searching for financing options its best to be knowledgeable of your financial profile and nature of the repair/improvement being requested.
Factors to consider are:
- Household size and income – When income limits are stated, some programs require income information from ALL household members over the age of 18. Others require income information from only the property owners. The income limit may be adjusted for household size or may be an amount not to exceed regardless of household size.
- Credit history – Timeliness of monthly payments, judgments, liens, collections, credit score, number of recent inquiries may impact your ability to obtain credit. Some financing options require only that you are current on your mortgage and property taxes.
- Type of project – Some loans are specific to a type of improvement such as health, safety, code repairs. Others are more for general improvements that are cosmetic in nature that add value.
- Contracts and down payments -NEVER sign a contract or provide a down payment unless you know your financing is in place and your contractor meets city and state licensing requirements.
- Ability to repay the loan – Borrower’s monthly debt in relation to their monthly income and total loans secured by a mortgage against the home compared to the home’s value may apply. Some programs have no such requirement
- Neighborhood – Your neighborhood may have additional programs. When looking for home improvement financing opportunities it is best to start with your neighborhood organization. To find out what neighborhood you are in, go to the Minneapolis Property Info website or call 311 for more information about how to contact your neighborhood.
Listed below are links to agencies that may have additional programs. Click on the agency name to be redirected to their web site:
- Center for Energy and Environment
- Community Action Partnership of Hennepin County
- Habitat for Humanity/ Brush with Kindness
- Hearts & Hammers
- Minneapolis Lead & Healthy Homes
- NeighborWorks Home Partners
- Rebuilding Together
- Sustainable Resource Center
For more information or to submit an application or request, you can contact us at:
Attention: Owner Occupied Residential Lending Team
105 Fifth Avenue South Suite 200, Minneapolis MN 55401
Phone: (612) 673-5174
FAX: (612) 424-8281
Email: [email protected]
Last updated Dec 30, 2019