Loan Guidelines

  • Borrower's pre-rehabilitation indebtedness on first mortgage must not exceed 100% of most recent Kitsap County assessment
  • Borrowers must be owner-occupants of the subject home
  • Household income must be 80% or below Kitsap County median for single family residence, or 50% or below for duplexes or residences with 1 accessory unit
  • Loan due in full upon sale, transfer, 1st mortgage payoff, or change in use of property (ie: rehabilitated residence must remain owner occupied)
  • Loan will be secured through a Deed of Trust with city in second position behind a secured first mortgage
  • Maximum principal $20,000; 15 year term
  • Pre-payment penalty if property is sold or transferred less than 61 months after loan origination (equity recapture up to a maximum of 12% annually)
  • Simple interest 5% annually, deferred, for low income (80% of area median as determined by HUD); simple interest 3% annually, deferred, for very-low income (50% of area median as determined by HUD)