Renovation Loans

Step 1: Download Application | Step 2: Download Authorization Form | Step 3: Budget Worksheet

Before

After

During Renovation

• Renovation loans may be taken out to renovate or add on to any part of your home.

• Appraisal on the home must be completed on any renovation loan approved.

• We have two licensed appraisers, who appraise all properties.

• Renovation Loans cannot exceed the difference between the appraised value, as determined by a MCTFC licensed appraiser, and any existing indebtedness.

• Staff will complete a checklist of the building condition.

• Maximum loan amount is up to the appraised equity.

• Interest rates are 5% or 6% depending on income.

• Maximum term on a renovation loan is 15 Years.

• Existing mortgage payments must be current.

• The existing mortgage balance plus the requested subsequent loan shall not exceed the maximum loan allowable.

• Applicants for subsequent loans must re-apply and re-establish eligibility.

1. Along with the completed application, a copy of your income tax forms for the last two years must be included.
2. A $25.00 application fee will be charged to process your application and must be included.

• Title to the property being financed must be free and clear of any liens and mortgages, other than the original title mortgage.

• Homeowners must provide an acceptable water test and a certificate of compliance on the septic system

• The abstract to the property must be updated and sent to us for a title opinion. If leased land, contact the Reservation Land Office to obtain a Resolution for Home Loan Lease, Which includes a complete legal description, effective date, term, lot size, and any fees. If the land is allotted, contact the Bureau of Indian Affairs for instructions and approval. Title must be in the borrowers name, whether in fee or leasehold. MCTFC must be in either first or second lien position.

• Obtain a homeowner's Insurance Binder listing the Minnesota Chippewa Tribe Finance Corporation as mortgage holder and have the billing sent to us. Also, inform your agent that you will have an escrow account for all future billings.

• 2-Construction specialists are available to help you through the process.
• Renovation loans must have complete material and labor list along with floor plans for additions.

• Contracts between the contractors and homeowner must be signed by both parties and attached to the estimate. (MCTFC will supply a copy of the contract to be used)

• Once all estimates and contracts have been signed and turned in to our office a construction specialist will review them.

• Once the package is complete (all estimates and contracts are in and appraisal is complete) it will be sent to the underwriter and then to the closer to set up a closing date.

• No appliance or furniture purchases are allowed.

• A renovation account will be set up after closing to track all payments going out.

• All payments sent to our office will be paid weekly.

• The homeowner and contractor must sign off on all payments made. (MCTFC will supply a copy of the payment request forms)

• An inspection must be completed by a construction specialist before payments submitted to our office can be paid.

• Any changes in the approved construction plan shall require a formal written change order approved by the owner, contractor, and the Minnesota Chippewa Tribe Finance Corporation. (MCTFC will provide change order forms)

• Ninety (90) days after closing of loan, any unused building funds will be applied to the outstanding loan balance.

• After closing, funds will be deposited into a building account for the borrower (See instructions for building accounts)

Step 1: Download Application | Step 2: Download Authorization Form | Step 3: Budget Worksheet