Low Interest Home Improvement Loan Program

Homeowners, Fix up your home with a below market interest loan.

With a Low-Interest Loan, You Can:

• Add insulation and seal air leaks
• Replace a furnace
• Add air conditioning
• Replace garage doors or storm doors
• Install new windows
• Add new siding
• Make electrical or plumbing improvements
• Repair or replace the roof and gutters
• Update a kitchen or bath
• Paint the interior or exterior of your home
• Replace carpeting
• Repair or replace a porch

Income Qualifications

To be eligible for the low-interest loan, the borrower must reside in a targeted redevelopment area.  Otherwise, the borrower's income cannot exceed 80% of the metropolitan area income.  This income level is $47,360 for 2007.

Please contact a participating organization or UMB for more information on targeted redevelopment areas and income levels.

General Qualifications

• You must own and occupy the property to be improved, as your principle residence. 
• You must meet the income guidelines or reside in a targeted redevelopment area of Cole or Callaway County.
• You must have an acceptable credit history and have the ability to repay the loan.
• Your County property tax payments must be current.
• You must comply with all applicable City permits and inspections.
• All contractors must be licensed.

Loan Terms

All Home Improvement Loans will be made with the following terms:

• Maximum loan amount is $25,000.
• Minimum loan amount is $2,500.
• Your loan will be a simple interest loan with no prepayment penalty.
• Your loan disbursement must be made directly to you and your contractors.
• All loans must be secured by a Deed of Trust on your home.
• The project must be completed within six months and be approved by a City inspector.
• The interest rate is fixed for the life of the loan.
• All loans on your home, including the new loan, cannot exceed 100% of the value of your home.
• Your loan must be paid in full if you move or sell your property.
• UMB does not guaranty, expressly or implied, the workmanship of the contractor and the selection of the contractor is the sole decision of the borrower.

How to Apply

1. Determine the improvements you want to make to your home.
2. Obtain an application package from a participating organization, or contact Mary Lou Hughes directly at UMB Bank, n.a., (573) 638-2378.
3. Return the completed application to UMB Bank, n.a., 300 Dix Road.

You will need to provide a copy of your:

1. Most recent pay stub and tax return, including the W-2.
2. Pension benefit statement 1099 and/or social security benefits awards letter, if applicable.
3. General warranty deed.
4. Homeowner's insurance declaration page.
5. Contractor's bids for repairs and improvements.

For more information call:

• Mary Lou Hughes, UMB Bank, n.a., (573) 638-2378