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 $285,000 to qualify for this and new rental units can not exceed costs of $215,000 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 $285,000 per new home for owner occupied construction or $215,000 per unit for new rental construction.
- Loans can cover up to 80% of total project cost
- Interest Rate: Rate of inflation (Consumer Price Index January 2021 + 1%) = Currently 2.4%
- Term: 1 Year or payable on sale or occupancy of construction loans
- Repayment: Monthly Interest-only payment, with principal balloon payment at end of term
- Incentive: If loan is repaid in six months, 1% of principal will be reduced from final principal payment. If the loan is repaid in nine months, 0.5% of principal will be reduced from final principal payment.
- Application Fee: $500 for loans over $100,000, $750 for loans under $100,000
- 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 e-mailing firstname.lastname@example.org
- Application is confidentially reviewed by McCook Rural Workforce Housing Loan Committee
- Applications recommended by the loan committee will be confidentially reviewed by 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
Questions: Contact Andy Long at email@example.com or 308-345-1200