Two Programs Created to Help with Mortgage Payments
Edina, Minn., July 13, 2020 – The Edina Housing Foundation approved two new programs to help ease the financial burden some homeowners in Edina are facing because of COVID-19.
“In these difficult times, we felt compelled to not only assist people who want to move to Edina, but help the folks who are already living here,” said Edina Housing Foundation President Jeff Huggett. “The forbearance and refinance programs are designed to assist households that have been affected by the pandemic by reducing their monthly mortgage obligation.”
Some banks require that the forbearance amount is either repaid through a balloon payment or an increased mortgage payment over a short amount of time until the forbearance amount is repaid. For some homeowners, this increased mortgage payment is not feasible. This Forbearance Program would allow qualified Edina homeowners to borrow the forbearance amount due from the Edina Housing Foundation, which would be secured by a second or third mortgage. The second or third mortgage is due when the home is sold or at the maturity of the first mortgage.
• Loan amount: up to $15,000
• Available to existing Come Home 2 Edina borrowers and eligible Edina homeowners who meet the income and house value criteria
Refinance Second Mortgage Program
With program guidelines similar to the Come Home 2 Edina Second Mortgage Program, the Refinance Second Mortgage Program is for homeowners whose current mortgage payments are causing them to be cost burdened (paying greater than 30 percent of their income toward the loan principal, interest, taxes and insurance).
Homeowners can apply to refinance their first mortgage with a mortgage lender, one that will allow allow a second mortgage.
• Loan amount: up to $60,000
• Available to eligible Edina homeowners who meet the income and house value criteria
• Loan recipients must comply with the Come Home 2 Edina guidelines
• Income qualifications: $103,400 for a household of one or two; $118,900 for a household of three or more
• House value: $425,000 or less’
• The house must be the only property owned by the borrower.
For more information, visit ComeHome2Edina.com or contact Affordable Housing Manager Stephanie Hawkinson at 952-833-9578 or shawkinson@EdinaMN.gov.