[The latest news for Minnesota Housing home improvement lender partners]
Reminder: Pricing and Auto-pay Incentive
On July 2 we implemented Fix Up Loan Program changes, including tiered interest rates and allowing the auto-pay incentive with both secured and unsecured loans (not available with Energy Incentive loans, Accessibility loans, or Community Fix Up loans).
Here are some reminders to prevent errors:
Select the correct rate, term, and auto-pay incentive (if applicable) when locking the loan in the online commitment system.
To receive the auto-pay interest rate reduction, you must select the Auto-pay incentive rate option in the system (see example below).
Use Forms Generator to ensure the note has the correct interest rate.
Use the correct note. We have four different notes: secured, secured with ACH, unsecured, and unsecured with ACH. Only use the ACH notes if you have locked the loan at the auto-pay incentive rate.
Notes with ACH additional calculation:Notes for loans with auto-pay include a section explaining to the borrower that their rate will increase if auto-pay is terminated. To complete that section of the note, the lender must calculate and enter what the non auto-pay rate would be.
When the auto-pay incentive option is selected in the online commitment system, the rate lock will reflect the auto-pay interest rate reduction. To calculate the non auto-pay rate that would apply if auto-pay is terminated, add .25% to the locked rate.