Roofs Over Rutland
Heritage Family Credit Union (HFCU), in partnership with the City of Rutland and the Vermont Treasurer's Office, has developed Roofs Over Rutland to increase availability of housing in Rutland.
The program provides a variety of lower-rate products to help individuals and developers create new housing that is priced on par with current home values. Products range from business lines of credit to residential home equity loans, construction and renovation loans.
Who is the Program For?
Roofs Over Rutland supports both individuals and developers building new housing units within the City of Rutland. This can include ground-up construction or creating livable space out of previously uninhabitable space. The funds are not available for the renovation of existing housing units or livable spaces.
How Does the Program Work?
There are two initiatives under the program, each with specific products. Each product application begins the same way.
The City of Rutland reviews your initial request to ensure the property meets their location guidelines.
After submitting your initial request, you’ll be redirected to begin your application. Your application is processed by HFCU. The Mortgage and Business Services teams will work with you throughout the application process to gather documentation and provide guidance.
Applications will be reviewed on a first-come, first-serve basis. A full application must be submitted in order to be placed in the queue.
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Business Line of Credit
- For 1-4 Family Units
- Amounts up to $150,000
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Business Term Loan
- Scheduled periodic disbursements
- Amounts up to $150,000
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Residential Home Equity Loan
- Scheduled periodic disbursements
- Amounts up to $150,000
-
Renovation Loan
- Designed to bring previously unoccupied rental units back to market rate
- Amounts up to $750,000
-
Construction Loan
- Designed for ground-up construction of new property
- Amounts up to $5 million
What Are the Qualifications?
In general, your application will be reviewed for:
- Credit worthiness
- Debt-to-income ratio
- Loan-to-value ratio
There are additional qualifications specific to each product type. You will be advised of these during the application process.
Initiative 1 Products
Business Line of Credit
The business line of credit is for owners of 1-4 family units.
- Offers loan amounts between $30,000 and $150,000
- 3.50% APR 1 fixed rate for 5 years
- Payments amortized up to 25 years
- Draws on the line monitored and approved by HFCU
Business Term Loan
The business term loan provides periodic disbursements as milestones are met.
- Offers loan amounts between $30,000 and $150,000
- 3.50% APR fixed rate for 5 years
- Payments amortized up to 25 years
Loan proceeds are distributed as certain milestones are met:
- 80% of loan proceeds are released immediately
- 20% of loan processed are held in escrow
- 95% of that escrowed amount is released upon receipt of paid invoices and photos of completed work
- 5% of that escrowed amount is released up receipt of certificate of occupancy
Residential Home Equity Loan
The home equity loan offers homeowners a chance to create new housing. The rental can be an attached unit (i.e. the owner lives in one unit of a 4-person unit) or separate. The housing unit must be a new unit. The funds are not available for renovations on a currently livable unit.
- Offers loan amounts between $30,000 and $150,000
- 3.50% APR fixed rate
- Payments amortized up to 25 years
Loan proceeds are distributed as certain milestones are met:
- 80% of loan proceeds are released immediately
- 20% of loan processed are held in escrow
- 95% of that escrowed amount is released upon receipt of paid invoices and photos of completed work
- 5% of that escrowed amount is released up receipt of certificate of occupancy
Documentation Requirements for Initiative 1 Products
Additional documentation may be required.
- Personal tax returns: most recent 2 years federal tax returns including all schedules
- Business tax returns (if applicable): most recent 2 years federal tax returns for all businesses owned, including schedules
- Mortgage statement, tax bill, and homeowner’s insurance for the property
- Paystubs covering the past 30 days
- W2s for the past 2 years, unless self-employed
- Cost breakdown and estimate for intended improvements
- Signed estimates or contracts for work being completed
- Approved permits as required by the city (zoning, water, building, etc.)
Initiative 2 Products
RENOVATION LOAN
This loan is designed to revitalize previously unlivable units, creating new housing at market value.
- Offers loan amounts between $150,000 and $750,000
- 3.50% fixed APR during the 12- or 24-month renovation period
- Interest-only payments during renovation period
- 5-year term
- Can be amortized up to 25 years, although remaining balance will balloon at the end of the 5-year term and is subject to refinancing at market rate pricing
Loan advances will be managed by HFCU. Site visits and lien waivers may be required.
Documentation Requirements for Renovation Loan
Additional documentation may be required.
- Personal tax returns for the past 2 years (federal) including all schedules
- Business tax returns for the past 2 years (federal) for all businesses owned, including schedules
- Mortgage statement, tax bill, and homeowner’s insurance for the property
- Paystubs covering the past 30 days
- W2s for the past 2 years, unless self-employed
- Cost breakdown and estimate for intended improvements
- Signed estimates or contracts for work being completed
- Rental projections for property once renovations are completed and units are online
- Approved permits as required by the city (zoning, water, building, etc.)
CONSTRUCTION LOAN
This loan is designed for ground-up construction of a new property.
- Offers loan amounts between $500,000 and $5,000,000
- 3.50% fixed APR for the 12- or 24-month construction period
- Interest-only payments during construction period
- 5-year term
- Can be amortized up to 25 years, although remaining balance will balloon at the end of the 5-year term and is subject to refinancing at market rate pricing
Loan advances will be managed by HFCU. Site visits, final inspection, and final lien waiver are required.
Documentation Requirements for CONSTRUCTION Loan
Additional documentation may be required.
- Personal tax returns for the past 2 years (federal) including all schedules
- Business tax returns for the past 2 years (federal) for all businesses owned, including schedules
- Mortgage statement, tax bill, and homeowner’s insurance for the property
- Paystubs covering the past 30 days
- W2s for the past 2 years, unless self-employed
- Cost breakdown and estimate for intended improvements
- Signed estimates or contracts for work being completed
- Rental projections for property once renovations are completed and units are online
- Due diligence for general contractor
- General liability insurance
- Proof of bonding, if applicable
- Copy of any existing environmental due diligence
- Approved permits as required by the city (zoning, water, building, etc.)
Questions?
Please email us at roofsoverrutland@hfcuvt.com if you have any questions.