The city of Merced's housing division wants eligible Mercedians to apply for some $300,000 in home improvement loans.
Funds for the CALHOME loan program are provided by the state Department of Housing and Community Development, according to the city housing division website. Daniel Ainslie, development manager for the city, said a lot of people have shown renewed interest in the loans. Borrowers can use the money for interior and exterior repairs, such as doors, windows and roofs.
"Unfortunately, the economy, the way it is, people have been unable to make repairs to their homes," he said. They can "make those deferred payments whether it's roof, doors or windows."
Loans are available to eligible first-time home buyers or people looking to rehabilitate their homes, he said.
In 2006, the city's housing division received a $600,000 grant to provide loans to low- and moderate-income households. About half that amount has been used, and the city is looking to spend the rest on eligible homeowners.
Homeowners can take out a maximum loan of $40,000 and can qualify based on how much they owe on their home, as well as what their income levels are, Ainslie said.
It's a 30-year deferred loan where people possibly don't have to make any payments in that amount of time, according to Dawn Mendonca, a housing finance specialist. And there's no penalty if they make an early payment.
Ainslie said there are deferred payments based on income level, or "on a case-by-case level."
Some loan payments can be deferred, and other times, some may have to make small monthly payments, he said.
"If it's deferred for 30 years, make payments after 30 years," Ainslie explained.
Since it began in 2006, 12 first-time home buyers have participated in the CALHOME loan program within the city of Merced. During the 2010-11 fiscal year, the loan program has helped five first-time home buyers. In the fiscal year before that, Mendonca said, it helped more homeowners.
People can use the loan money for simple repairs or more expensive ones, including dual-pane windows, new roofs, new floor coverings or plumbing repairs.
Some of the qualifications are that the house has to be owner-occupied and within the city of Merced, and that the loan amount can't exceed $40,000.
To find out if you qualify, call (209) 385-6863 or visit the housing division at the Civic Center, 678 W. 18th St., third floor.
Reporter Ameera Butt can be reached at (209) 385-2477 or abutt@mercedsun-star.com.
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