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.
- 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.
- Substantial repair or rehabilitation of dilapidated housing stock, for which the cost to rehabilitate exceeds fifty percent (50%) of the unit’s assessed value.
- Upper story housing development.
- Rehabilitation that includes the conversion of an existing building into housing.
- 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
- 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 baloon 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.
- Incentive: Incentive for one year construction loans, if the loan is prepaid a reduction in payoff may be calculated as follows: 6 month prepayment = 0.5% of the remaining principal balance, 3 month prepayment = 0.375% of the remaining principal balance.
- Application Fee: $500 Loan Origination Fee
- Closing costs and title fees: Closing costs and title fees can be included in the loan amount.
- Application can be obtained from McCook Economic Development Corporation at 402 Norris Ave., Suite 301, or by calling 308-345-1200 or emailing email@example.com
- Application is confidentially reviewed by the McCook Rural Workforce Housing Loan Committee
- Applications recommended by the loan committee will be confidentially reviewed by the MEDC board
- Closing documents will be drawn up by MEDC staff and may include:
- Title commitment
- Promissory Note
- Deed of Trust
- Mechanics lien waivers or affidavit
- Personal guarantee
- ACH form for automatic payment
- Subordination agreement if required and notice of default