Owner Occupied Rehabilitation

How it works

The City of Wilmington offers several housing rehabilitation program options for homeowners living within the corporate city limits of Wilmington. The program objective is to preserve affordable housing stock by providing affordable loans for housing repairs to low- to moderate-income homeowners.

The city also provides free technical assistance by preparing a detailed list of the repair work and soliciting bids for the repairs. Homeowners select the contractor and authorize payment after the work is satisfactorily completed.

What the money covers

Loan proceeds may be used to repair and improve the dwelling and/or remove health and safety hazards. Closing costs may also be included for the fully amortized loan.

Remodeling projects and home additions are not eligible uses of funds.

Amounts and terms

The page describes three loan options:

• Minor Housing Repair Forgivable Loan: maximum loan amount $10,000; no payment required; promissory note and deed of trust for 3 years.
• Major Housing Rehabilitation Forgivable Loan: maximum loan amount $90,000 base amount, plus contingency not exceeding the base; 0% interest; no application fee; free technical assistance and home inspection; houses repaired to city and HUD minimum housing standards; no minimum credit score requirement; loan term typically 20 years; security is first or second deed of trust; after rehab, value may not exceed HUD-specified limits; outstanding loan balance due upon borrower’s death, after 20 years, or sale or transfer of property.
• Fully Amortized Housing Rehabilitation Loan: loans up to $100,000 including a 15% contingency for existing construction, or up to $150,000 including a 15% contingency maximum for demolition and reconstruction; available to homeowners whose income does not exceed 80% of Area Median Income (AMI); maximum loan amount listed as $95,000/$115,000; 620 minimum credit score; fixed 2% interest rate; 20–30 year loan term.

How to apply

Interested homeowners should call 910-341-7836 for more information or to apply. The page also provides housing program application materials and an owner-occupied rehab addendum for download.

Timing and deadlines

The page does not state a closing date or application deadline. It notes that the Homeowner's Maintenance Workshop is mandatory for citizens who have already submitted applications for the Homeowner Rehab Program, and the next workshop date is TBD.