City of Milpitas Housing Rehabilitation Loan Program
The City of Milpitas is pleased to offer zero to three percent (0 -3%) interest loans to income eligible homeowners to help finance the cost of home repairs.
How is the program funded?
The City of Milpitas uses federal Community Development Block Grant (CDBG) funds to provide loans to low and very -low income homeowners with the goal of preserving the City’s neighborhoods through the conservation of existing housing stock. The loans are for eligible improvements identified through property inspections.
How does this program work?
Determine if household is income eligibile • City staff will conduct housing inspection with consent of homeowner • City staff prepares the work specification, necessary loan documents and present case to City’s Loan Committee • Upon approval, homeowner or City solicits three bids from licensed contractors
Who is eligible?
The program is designed to help low and very -low income Milpitas homeowners with a household gross income at or below 80% of the county median income as determined each year by HUD. Income guidelines are subject to change annually. Household Size Very Low (50% AMI) Low (80% of Median) 1 37,250 52,850 2 42,550 60,400 3 47,850 67,950 4 53,150 75,500
Eligible Repairs (but not limited to):
Leaky roof/rain gutters, water damage repairs, plumbing repair, electrical wire hazards, inadequate bathroom/kitchen facilities, floors, fences, patch and paint
What are the financial terms available?
Deferred Loan – household income must be within 50% of the median income for this region. Loans are secured by a Deed of Trust. Maximum Loan Amount Up to 90% of equity Loan Term 50 years Interest Rate Zero Interest Loan Fees No Fee Amortized Loan – household income must be within 50 and 80% of the median income for this region. Loans are secured by Deed of Trust Maximum Loan Amount Up to 90% of equity Loan Term 15 years Interest Rate 3% Loan Fees Low Fees
To apply or request additional information, please call Housing and Neighborhood Preservation at (408) 586 – 3286.
