Habitat for Humanity of Valencia County is pleased to offer another program to assist homeowners in Valencia County that are in need of home repairs, but do not have the financial resources to protect our county’s most precious resources, our homes.
Low income residents who are not able to fix up their homes because of high material costs, may qualify under Habitat’s Rehabilitation Program.  HUD, through New Mexico Mortgage Finance Authority, provides up to $40,000  in forgivable loans for families or individuals who qualify.

WHO CAN APPLY FOR A REHABILITATION LOAN?
Owner-Occupant homeowners whose household income is below 50% of the median income are eligible for services.  There is a $40,000 cap of funding on a particular project in Valencia County and the funding must meet all the code deficiencies of the home. Luxury items cannot be included in the scope of work.

WHAT KIND OF REPAIRS CAN BE MADE?
The funds can be used to rehabilitate the property from the effects of unsafe and deteriorating conditions such as; wood rot, leaky roofs, faulty electrical wiring, plumbing, etc..

HOW DOES THE LOAN WORK?
The funds provided are promised to be repaid if the home changes ownership or is refinanced during the next 5-10 years depending on the amount of assistance provided. After the affordability period expires, it is forgiven at a rate of 20% per year for the next 5 years. If the owner of the property passes away during the affordability period, the loan automatically forgiven at that point so that their heir bears no burden. Should a sale occur, the amount repaid is prorated to the equity of the home and the time of occupancy post rehab.

WHAT IS THE INTEREST RATE?
There is no interest rate. Most loans are forgiven as the homeowners do intend to live in the home for the duration of the affordability period.

HOW IS THE LOAN SECURED?
A restrictive covenant and note is applied to the property that goes away after a period of time explained above.

WHAT SERVICES ARE PROVIDED?
Habitat for Humanity of Valencia County will act as your fiscal agent and perform home inspections, before, during and after the work, handle all exchanges of funds for the contractors, and perform all required paperwork to insure the project meets the compliance regulations from HUD.

HOW LONG DOES THE APPLICATION PROCESS TAKE?
Applications are taken annually for the program. It usually takes 3 months to complete the regulations once the applicant is approved, An additional 2 months for the rehabilitation work to be completed.

CAN I LIVE IN THE HOUSE DURING REHABILITATION?
That depends on how extensive the rehabilitation is. The rehabilitation can be extreme and the home may be unlivable during the process. In addition, contractors must have complete access at all time to complete the work. Therefore, you would have to relocate temporarily during the construction phase. Most applicants stay at family members or friends homes.

2006 ReHab Success Stories