Since 1995 the Bancroft Neighborhood Association (BNA) has used $145,000 of Bancroft’s Neighborhood Revitalization Program (NRP) dollars to provide low-interest home improvement loans to Bancroft homeowners through TCF National Bank. In 2010, BNA put $50,000 additional NRP housing funds towards home improvement loans designed to support low or moderate income residents who do not qualify for our primary loans. The new loans will be administered by the Greater Metropolitan Housing Corporation (GMHC).
Included here is basic information about the BNA Home Improvement Loan programs, and how to apply. For more details on each loan, please refer to individual loan applications and guidelines, or contact the Bancroft Neighborhood Association or loan servicer.
TCF HOME IMPROVEMENT LOAN PROGRAM
BNA’s main loan program, the TCF Home Improvement Loans may be between $2,500.00 and $15,000.00 at 6% fixed interest rate for homesteaded property owners and at a 6% for non-homesteaded property owners. The borrower will pay closing costs (substantially reduced for this program), but closing costs may be financed with the loan. These are home equity loans, and loan amounts cannot exceed 100% of the properties’ value. Any home owner in Bancroft may apply for this program. TCF Bank will qualify prospective borrowers based on guidelines developed for this program by the BNA and TCF.
GMHC REVOLVING HOME IMPROVEMENT LOAN PROGRAM
The intent of the Revolving Home Improvement Loan Program is to provide a loan opportunity to Bancroft residents who do not meet the qualifications for the TCF Low Interest Home Improvement Loan program. Loans may be between $1,000 and $5,000, at a 3% fixed interest rate. The loan term is generally one year per $1,000 borrowed. The maximum term will be five (5) years. Applicants must have the ability to repay the loan. There is no loan-to-value limit for revolving loan recipients. Eligible borrower’s gross household, annual income must be at or below 150% of the Area Median Income (AMI).
GMHC LOW INCOME DEFFERED LOAN PROGRAM
The intent of the Low Income Deferred Loan Program is to provide a deferred loan opportunity to qualifying Bancroft residents who do not meet the qualifications for the BNA’s other home improvement loan programs. Loans may be between $1,000 and $5,000, with 0% interest. A recipient may participate in the low income deferred loan program one time. One-third (1/3) of the original loan amount will be forgiven every 2 years. The full loan amount will be forgiven after 6 years. The entire un-forgiven principal balance of the loan shall be immediately due and payable upon sale, assignment, conveyance, transfer, lease or termination of the property as the Borrower’s principal place of residence. Eligible borrower’s gross household, annual income must be at or below 80% of the Area Median Income (AMI).
| Household Size | 80% of AMI | 150% of AMI |
| 1 | $47,040 | $88,200 |
| 2 | $53,760 | $100,800 |
| 3 | $60,480 | $113,400 |
| 4 | $67,200 | $126,000 |
| 5 | $72,640 | $136,000 |
| 6 | $78,000 | $146,160 |
| 7 | $83,360 | |
| 8+ | $88,720 |
APPLYING for Bancroft Home Improvement Loans
The TCF Home Improvement Loan is BNA’s main loan program, and most Bancroft residents will begin by applying for this loan. Begin obtaining two bids for your project from licensed contractors. You will need a written contractor’s bid at the time of application. Borrowers may do work on their own, often referred to as “sweat-equity”, in which case you must secure complete estimates for all material supplies.
Download the TCF Home Improvement Loan Referral Certificate
Fill out the Referral Certificate listing the contractor(s) you have selected and their license numbers, and/or list the materials supplier(s) if doing any of the work on your own, and mail or deliver it to:
The Bancroft Neighborhood Association
4120 17th Avenue South
Minneapolis, MN 55407
If our office, located in Bethel Evangelical Lutheran Church, is closed, you may leave the form in our mailbox in the church office, or put it through the mail slot. The BNA will review the project to determine eligibility for the program and fax the referral to TCF Bank. TCF will contact you to begin the loan application process. Most or all of the application can be completed over the phone. TCF will need a complete copy of your contractor bids and/or material supplies. If approved, arrangements will be made by TCF to close on the loan. All payments will be made to TCF Bank.
If an applicant is denied the TCF loan, they may apply to the GMHC loan programs. Applications under $2,500 do not qualify for the TCF loan, and homeowners can apply directly to the GMHC loan programs. Applications for the GHMC loan programs are available online at www.bancroftneighborhood.org, or at the BNA or GMHC offices.
Call the BNA at 612-724-5313 with questions. If you have questions for TCF Bank, call Bill Sarvela at 612-661-7736. If you have questions for GMHC, call Renee Woodard at 612-722-7141 x10.
To verify a contractor’s state license, call 651-284-5034.
To discuss problems or complaints regarding a state licensed contractor, call 651-296-2488.
To verify a city license contact City Licensing at 612-673-2080.
I’m very interested in your home improvement loan and I’m wondering how many years recipients have to pay off the loan?
Thanks for your interest, Matt. Typically, home owners have 1 year for every $1,000 borrowed, up to 12 years. Please feel free to get in touch with any other questions.