Borrower Eligibility

Previous Home Ownership

The borrower does not have to be a first-time Homebuyer, but must occupy the property as their principal residence once the rehabilitation work is completed.

Income Limits

The combined income of all adults who will occupy the property cannot exceed the limits for the county in which the property is located.

Purchase Price Limits

The total purchase price cannot exceed the purchase price limit for an existing property in the county where the property is located.

The total purchase price includes the price of the property and the cost of proposed rehabilitation work including a 10% cost overrun allowance. For assistance in calculating the purchase price, refer to the Major Rehabilitation Worksheet (Home Form 25).

Scope of Improvements

At least 50% of the existing external walls of the property must remain as external after completion of the work.

The cost of rehabilitation must be at least one third of the purchase price of the property.