Dakota County Silver Lining Loan Program

Silver Lining Loan Program
Foreclosure rates have increased in Dakota County communities and across the nation over the past few years. The Silver Lining Program is designed to begin rebuilding and stabilizing Dakota County neighborhoods.

Dakota County Community Development Agency (CDA)has created the Silver Lining Loan Program which will provide up to $15,000 to homebuyers purchasing bank-owned properties in areas of the county that have experienced higher than normal levels of mortgage foreclosures.

Loans may be used for:

• Up to 50 percent of the required downpayment
• Payment of normal and usual closing costs and/or
• Buy down of mortgage principal

Homebuyers will not receive any portion of a Silver Lining loan as cash.

Eligible Properties

• Single family homes, duplexes, townhomes and condominiums located in eligible areas of Dakota County that are unoccupied, foreclosed homes that are beyond the redemption period and are bank-owned.
  
  
• Eligible areas include:
  

  Apple Valley	All areas eligible except small NE corner
  Burnsville	All areas eligible except around Crystal Lake
  Eagan	Most of the city is not eligible
  Farmington	All areas eligible
  Hastings	All areas eligible
  Inver Grove Heights	Most of the area in western 2/3 of city is not eligible
  Lakeville	All areas eligible
  Northfield	All areas eligible
  Rosemount	Most of the city is not eligible
  South St. Paul	All areas eligible
  West St. Paul	All areas eligible
  Smaller Cities	All are eligible except Lilydale and Mendota

  
  

• Ineligible areas: Mendota Heights and all Dakota County townships
  
  

• Maximum Purchase Price = $256,080
• Purchase price can not exceed 85 percent of appraised value.
• Appraisals will be ordered by the Dakota County CDA and will meet the Uniform Relocation Assistance and Real Property Policies Act criteria.
• Home must pass a Housing Quality Standard (HQS) inspection conducted by the Dakota County CDA.

Eligible Borrowers
Homebuyers who are income eligible and qualify for a traditional fixed-rate first mortgage loan can apply for a Silver Lining Loan through a participating mortgage lender.

*Income limits are as of 2/08 and are subject to change.

The home must be homebuyers primary place of residence.

Eligible Financing
Silver Lining loans can be used in conjunction with any fixed-rate FHA, VA, RHS, Fannie Mae or Freddie Mac insured loan product that is generally considered to be an "A" or "prime" lending product.

Silver Lining loans are not eligible for use with subprime, interest-only or balloon loans, or with adjustable rate mortgages (ARMs).

Loan Terms

• Zero percent interest
• No monthly payments
• Minimum loan = $1,000
• Maximum loan = $15,000
• Repayable when the primary mortgage is paid off, the home is no longer the primary residence or when the home is sold or refinanced.
• Considered a "special mortgage" under the terms of Minnesota Statutes 58.13. Loans will be separately secured by a Second Mortgage and Promissory Note.
• Home Stretch® Homebuyer Education certificate required prior to closing.

The Silver Lining Program is funded by the federal Neighborhood Stabilization Program through the U.S. Department of Housing and Urban Development. The program is part of the Dakota County CDA's Homeownership Connection services which provides resources to help homebuyers and homeowners be successful.

Click on this link to see a Dakota County map or eligible areas.

http://www.dakotacda.org/pdf/Silver_Lining_Eligible_Areas.pdf

Information courtesy of Dakota County Community Development Agency