Q: Do I qualify for a loan?
- Your home must be within the City’s limits and must be an owner-occupied single family dwelling with enough equity to cover the amount of the loan, with only one existing loan or mortgage outstanding.
- Rental units do not qualify.
- Homes with a second mortgage do not qualify.
- The requested loan must be for necessary home improvements, such as roofs, replacement windows, siding, furnaces, insulation, water/sewer remedies, sagging or rotten floors, electrical work, etc. New home construction or cosmetic fix-ups do not qualify.
Q: How do I apply for a loan?
- Fill out an application. You can print an application from this webpage, or pick one up at the City Building from either the Clerk of Council or the Income Tax Administrator.
- You must attach two estimates from two different contractors for the work to be done to your application. The estimates must be detailed and cover the exact same improvements.
- You must attach a copy of your deed, mortgage papers, proof of property insurance, and your prior year’s tax returns to your application.
- Return your completed application, along with the required attachments, to the Clerk of Council or the Income Tax Administrator.
Q: What Happens Next?
- The loan application is reviewed by the Board of Trustees. Income, monthly expenses, current mortgage amounts, home value, and the submitted documentation will be used to determine eligibility. The Board may run a credit check and income verification.
- You may be requested by the Board to provide denial letters from two lending agencies to qualify for this program. Typically, this program is available to those homeowners who cannot qualify for conventional loans.
- If the Board of Trustees approves your application, it will set the terms and repayment plan for the loan. You will then have to sign paperwork accepting those terms and agreeing to the repayment plan.
- The Franklin Homeowners’ Association will file a lien equal to the amount of the loan against the property. You are responsible for the costs associated with filing the lien, and you must submit two checks to the Clerk of Council or the Income Tax Administrator, one made out to Steven Runge, Esq. in the amount of $50.00 and one made out to the Warren County Recorder in the amount of $28.00.
- The work is then awarded by the Board of Trustees to one of the contractors who submitted an estimate. Although you may prefer a particular contractor, the award is made at the discretion of the Board.
- The contractor must apply for and obtain a Building, Electrical or Plumbing Permit, as necessary. Please contact the City’s to determine whether a Permit is needed. (Click here to go to the Building Division [link to Building & Zoning Division page])
- The contractor begins the work, and once completed to your satisfaction and any necessary building inspections are performed, you must sign an Acceptance of Work Form and submit it to the City. Please file it with either the Clerk of Council or the Income Tax Administrator.
- A check for the completed work will be issued by the Franklin Homeowner’s Association to the homeowner and the contractor.
- Your payments on the loan must begin within thirty-days of the completion of the work, and must be paid on a monthly basis until paid in full.
- When the loan has been repaid in full, the Franklin Homeowners’ Association will release the lien it filed on the property. You are responsible for the costs associated with filing the release of lien, and you must submit two checks to the Clerk of Council or the Income Tax Administrator, one made out to Steven Runge, Esq. in the amount of $50.00 and one made out to the Warren County Recorder in the amount of $28.00.
Still have questions? Please contact the City at (937) 746-9921 and ask for Jane McGee (ext. 1102) or Jenny Loxley (ext. 1211).