Home Rehabilitation Loans
The City of Racine is proud to offer a variety of homeowner rehabilitation loans which can be used to improve the energy efficiency, visual appeal, safety and value of your home. We offer many different programs geared towards different types of homeowners, and we encourage you to take advantage of our low interest loan programs (which are secured as a mortgage on the property) to begin lowering your energy bills and/or increasing your property's resale value. Please see below for the different loan programs we offer.
To participate in any of the loan opportunities contact the Housing Department at housing@CityofRacine.org or (262) 636-9197 for more information.
Homeowner Deferred Rehabilitation Loan Program
This program is a fixed-rate homeowner low interest loan program, with interest and principal repayments deferred until the property is sold or transferred. Loans are limited to single and two family residential structures and homeowner income restrictions do apply (see income guidelines below). Priority consideration will be given to the rehabilitation of properties most in need of repair and whose rehabilitation will yield significant benefit of the neighborhood. Loan funds may be used for the correction of major housing and building code violations, weatherization, exterior rehabilitation and selected interior repairs. The loan carries a 2% interest rate for a term up to 20 years.
2012 Income Guidelines
| Family Size |
1 |
2 |
3 |
4 |
5 |
6 |
| Maximum Annual Income |
$14,650 |
$16,750 |
$18,850 |
$20,900 |
$22,600 |
$24,250 |
Homeowner Fixed Interest Rehabilitation Loan Program
This program provides for a fixed-interest rehabilitation loan, with the interest rate based upon the income of the homeowner (see income guidelines below). Priority consideration will be given to the rehabilitation projects which will yield a significant benefit to the neighborhood. Interest rate on the loan is 2-3%, depending on the income of the applicant. Only homeowners who have low or moderate incomes (see chart below for income limits are eligible to participate in the program. The loan proceeds may be used for the correction of major housing and building code violations, weatherization, exterior repairs and selected interior repairs. The loan term can be for up to 20 years. Monthly repayment of the principal and interest is required.
2012 Income Guidelines
| Family Size |
1 |
2 |
3 |
4 |
5 |
6 |
| Maximum Annual Income |
$39,050 |
$44,600 |
$50,200 |
$55,750 |
$60,250 |
$64,700 |
Rental Rehabilitation Loan Program
This program provides loan funds for the rehabilitation of non-owner occupied residential property occupied by low and moderate income tenants. Loans may be available for up to 75 % of the cost of the rehabilitation project. The loan rate is 5% with term up to 20 years. Loan funds may be used for the correction of major housing and building code violations, weatherization, exterior repairs and limited interior repairs. All loans are secured with a mortgage on the property. Eligibility for the program is based upon the income of the tenants, contact the Housing Department for more information.
For homes to be eligible, at least 51% of the tenants within the premises must meet the income guidelines below:
2012 Income Guidelines
| Family Size |
1 |
2 |
3 |
4 |
5 |
6 |
| Maximum Annual Income |
$39,050 |
$44,600 |
$50,200 |
$55,750 |
$60,250 |
$64,700 |
Mixed Use Rehabilitation Loan Program
This program provides loan funds for the rehabilitation of residential units contained in mixed use structures. Loan funds may be used only for interior rehabilitation work of the residential portion of the building. Loan amount up to $8,000 per dwelling unit, with a maximum of two units assisted in any one structure. The loan rate is 5% with a term of up to 20 years. All loans are secured with a mortgage on the property. Eligibility for the program is based upon the income of the tenants, contact the Housing Department for more information.
For homes to be eligible, at least 51% of the residential tenants within the premises must meet the income guidelines below:
2012 Income Guidelines
| Family Size |
1 |
2 |
3 |
4 |
5 |
6 |
| Maximum Annual Income |
$39,050 |
$44,600 |
$50,200 |
$55,750 |
$60,250 |
$64,700 |
Racine Energy Efficiency Program (REEP)
REEP provides financing for cost-effective energy efficiency measures (including but not limited to new appliances, HVAC upgrades and new/improved insulation) for owner-occupied homes at a 3% APR, without credit checks or liens. Because the measures are cost-effective, homeowners should see a positive cash flow while enjoying updated systems and more comfortable indoor spaces.
For more information, or to take advantage of this exciting opportunity visit the REEP website at www.CityofRacine.org/REEP