Rural Workforce Housing Loan Fund

McCook Economic Development Corporation (MEDC) has established a Rural Workforce Housing Loan program to provide low interest capital to individuals and businesses improving McCook’s workforce housing.

Eligible Projects

  1. New construction of owner-occupied or rental housing in a Red Willow community with demonstrated workforce housing needs, with an initial emphasis in McCook. New owner-occupied units can not be sold for more than $325,000 to qualify for this and new rental units can not exceed costs of $250,000 per unit for construction.
  2. Substantial repair or rehabilitation of dilapidated housing stock, for which the cost to rehabilitate exceeds fifty percent (50%) of the unit’s assessed value.
  3. Upper story housing development.
  4. Rehabilitation that includes the conversion of an existing building into housing.

Loan Details

Amounts

  • Minimum of $25,000
  • Maximum of $325,000 per new home for owner occupied construction or $250,000 per unit for new rental construction
  • Loans can cover up to 80% of total project cost

Term

  • Interest Rate: Generally, WSJ Prime Rate less 1 to 2%, with final rate decided by loan committee.
  • Term: One-year construction loan, however longer terms may be negotiated depending on type of development.
  • Repayment: Construction Loans – Monthly interest-only payments with a balloon payment of all principal and interest due upon maturity. Term Loans – Monthly principal and interest with a balloon payment of all principal and interest due upon the 10-year maturity.

Fees

  • Application Fee: $500 Loan Origination Fee
  • Closing costs and title fees: Closing costs and title fees can be included in the loan amount.

Loan Process

  1. Application can be obtained from McCook Economic Development Corporation at 402 Norris Ave., Suite 301, or by calling 308-345-1200 or emailing amanda@mccookne.org
  2. Application is confidentially reviewed by the McCook Rural Workforce Housing Loan Committee
  3. Applications recommended by the loan committee will be confidentially reviewed by the MEDC board
  4. Closing documents will be drawn up by MEDC staff and may include:
    1. Title commitment
    2. Promissory Note
    3. Deed of Trust
    4. Mechanics lien waivers or affidavit
    5. Personal guarantee
    6. ACH form for automatic payment
    7. Appraisal
    8. Subordination agreement if required and notice of default
RWFH Application

amanda@mccookne.org

308-345-1200