HOME REHAB Program

Eligibility Requirements

Call us at (757) 399-5261 and we’ll help you figure out if you’re eligible for our HOME REHAB Loan Program. Here are the guidelines used to determine eligibility.

Must own the real property with all building and improvements in fee simple title
Must have lived there for at least a year
Property must be residential in character and contain one or more violations of applicable housing codes and standards
Must have one to four complete dwelling units – however, loan proceeds may only be applied to the owner-occupied unit
Fire insurance coverage (and flood insurance, if applicable) must be current
Household debt to income ratio must not exceed 45%
Real estate taxes must be current
Hazard insurance coverage must be obtained on the property and remain in effect to cover the total of the indebtedness. The hazard insurance must also name the Portsmouth Redevelopment and Housing Authority, its successors and assigns as mortgagee for the full amount of the grant proceeds.

Income cannot exceed 80% of the area median income adjusted for family size as shown below:

Family Size	Income limit
1	$35,900
2	$41,050
3	$46,150
4	$51,300
5	$55,400

Eligible Repairs

Money you get through the HOME REHAB Loan Program has to be used for repairs and improvements to correct violations or deficiencies of Portsmouth’s housing standards and codes. Here’s how the loan proceeds have to be used:

First priority includes all exterior weather tight items (roofing, windows, storm windows, doors, storm doors, guttering) and appearance items in violation of city environmental regulations (painting, siding, porch, etc.)
Second priority includes repair or replacement of systems such as structural, electrical, plumbing, heating and air conditioning
Third priority includes repairing or replacing necessary items such as walls, ceiling, insulation, cabinets, and floor covering
Requests for emergency repairs or replacements will be evaluated and considered on a case-by-case basis (an “emergency” usually must be a life-threatening situation)

Loan Terms

The HOME REHAB Loan Program is not a forgivable grant, meaning you must pay it back. Here are the terms of the loan:

Interest is 5% for 10 years for the first mortgage
Interest is 6% for a second mortgage for 10 years
There’s no penalty for early payoff
A late fee (5% of the payment) will be charged when a payment is 10 or more days late
Even if you (the original applicant) sell, transfer, lease, deed or otherwise convey the property, you will still be obligated to repay the Portsmouth Redevelopment and Housing Authority the entire amount of the loan

Amount of Loan

For a qualified applicant, the amount of a HOME REHAB loan will be up to $25,000, or the actual cost of rehabilitation, whichever is less. If costs exceed $25,000, a decision may be made to authorize an increase covering the complete rehabilitation, including all approved repairs.

Checklist & Applications

If you’ve reviewed the general information about our HOME REHAB Loan Program and you’d like to apply for a loan, please call us at (757) 399-5261 to set up a meeting.

Here’s a checklist of what you’ll need to bring to the meeting and an application that you can fill out and print in advance if you choose.

Want more information?

Checklist

Application

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