Second Mortgage Application Checklist

The Come Home 2 Edina second mortgage loans are originated with assistance from the mortgage company providing the first mortgage financing.

Loan Package

The following documentation must be submitted to the Edina Housing Foundation* (EHF) to determine eligibility for the program:

  1. Uniform Loan Application for the first mortgage loan
  2.  Income Verification (Adults in Household) - pay stubs, two years most recent tax returns, statement from employer, etc.
  3. Asset Verification (two months) - bank statements, investment statements, etc.
  4. Purchase Agreement
  5. Property Appraisal
  6. Title Work
  7. Income & Asset Worksheets
  8. Buyer’s Occupancy Certificate
  9.  Program Reservation Form 
  10.  EHF should be included as a 2nd lien holder on the insurance binder. The loss payable clause should be: 

 East Edina Housing Foundation
 4801 West 50th Street
 Edina, MN 55424

11. Wiring instructions

Process

The size of the EHF second mortgage (up to $60,000, but not to exceed 25% of the purchase price) is determined by the borrower’s household first spending at least 25% of their gross monthly income on housing (including 1st mortgage PITI, association dues, etc. – do not include 2nd mortgage interest payments).

The first mortgage lender submits the loan package to the EHF for review by Stephanie Hawkinson and one member of the EHF Board of Directors. If it is determined that the applicant qualifies for the Come Home 2 Edina second mortgage loan, the Program Reservation Form is signed and returned to the first mortgage lender verifying eligibility.  An eligibility letter is also provided for the title company.

The Edina Housing Foundation will provide the closer a wire transfer from the EHF for the amount of the second mortgage, made payable to the title company responsible for the closing, as well as copies of the EHF’s Second Mortgage and Note for execution at the closing.

Some details for the closer:

  • After the closing, the title company shall return the original signed Second Mortgage Note and a copy of the signed Second Mortgage to the EHF, attention Stephanie Hawkinson.
  •  Upon recording of the Second Mortgage, the title company shall return the original document to the EHF, attention Stephanie Hawkinson.

Community Reinvestment Fund (CRF) – Loan Servicer

The EHF Mortgage and Mortgage Note documents are sent to Community Reinvestment Fund who services the EHF loan portfolio.  All payments, either principal or interest, made on a loan are sent CRF that in turn submits the payments to the EHF.  All loan pay-offs and satisfactions are administered by CRF.  Staff support for the EHF provides subordinations only for the refinancing of a loan, as long as there is no cash-out.

*The Edina Housing Foundation (EHF) is a dba for the East Edina Housing Foundation (EEHF)

Contact information

Stephanie Hawkinson
City of Edina
4801 W. 50th Street
Edina, MN 55424
shawkinson@edinaMN.gov
Phone: 952-833-9578
Fax: 952-826-0389

Application Materials

Come Home 2 Edina Reservation Form

Income and Asset Certification

Buyers Occupancy Statement