To qualify for a loan with the City of Racine, homeowners must be:

• Current with mortgage payments, property taxes, and property insurance.
• Within the City of Racine city limits. (Other county residents are not eligible.)
• Under the federally‐set income guidelines for the household.
• In agreement with program funding rules.

Loans require at least $3,000 of rehabilitation work in order to meet housing code or other appropriate City and State codes and rehabilitation standards. We can loan up to $25,000 per property.

Yes, everyone with a City Home Repair Loan must make regular monthly payments. The amount will be based on the individual loan terms (the rate, amount, and length of time for loan payback). Most loans from the City can be paid back over 20 years and range between 1-3% fixed interest. There is no penalty for early loan payback.

Yes, labor is warrantied for 1 year after project completion, and materials may be under warranty by the manufacturer.

Some people with less-than-great credit can get a loan through the City. There is no minimum credit score. Applicants must:

(a) Demonstrate both the willingness and financial ability to repay the rehabilitation loan and meet any outstanding or likely future obligations related to the property; and
(b) Not have declared bankruptcy within four (4) years; and
(c) Provide all financial data and relevant information necessary to document program eligibility and give the City Development staff permission to obtain verification of such information from appropriate sources.

We work around medical collections but all other collections/liens need to be resolved before the City can make a housing loan. Final policy-making and loan approval authority the responsibility of the City of Racine Loan Board of Review. Programs will only be available as funding is available.

No, the City cannot co-sign loan or give a loan directly to a relative on the homeowner’s behalf. The loan applicant must be the owner-occupant.