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1. Who is eligible for a CHIP loan?

For an owner occupied loan, the household income must be less than 80% of median income (view Income Eligibility Guidelines). The home must have sufficient equity available to apply. The property must be owner occupied for at six (6) months prior to the application date and remain owner occupied until the loan is paid in full. Clients must also have a consistent source of income to maintain their home, pay property taxes & insurance, and necessary living expenses.

Applicants with poor credit are still encouraged to apply. A credit report will be pulled as part of the application process, however it is only to identify major concerns that could lead to defaulting on the loan.

For a non-owner occupied loan, the investor is required to fund 50% of project expenses and make housing available to low and moderate income families.

Check to see if you are eligible using this form > (Am I eligible for a CHIP loan?)

2. Do I need to have good credit ?

Applicants with poor credit are still encouraged to apply. A credit report will be pulled as part of the application process, however it is only to identify major concerns that could lead to defaulting on the loan.

Loan eligibility is not based on a credit score or rating. 

3. How do I apply for a CHIP loan?

Call 425-257-8735 regarding eligibility. You will be mailed a CHIP application packet or an appointment can be set up. CHIP Page

4. What happens after I apply for a CHIP rehabilitation loan?

Once your loan application has been approved, your project will be placed on a waiting list, except for emergency repairs.

Once your project moves to the top of the waiting list, CHIP staff will set an appointment to meet at your home. A CHIP staff member will assess your home, check the main systems (electrical, foundation, plumbing, roof, heating) and recommend the scope of work.

5. How is the housing rehabilitation work paid?

CHIP provides loans at three percent simple interest (the interest does not compound). No payments are required on the CHIP loan for 15 or 25 years, depending upon income. The CHIP loan is repaid when the house is sold or when an estate is settled.

6. How do I pay for the housing rehabilitation work?

CHIP provides low interest loans in which no payments are required throughout the life of the loan as long as eligibility requirements are maintained. The CHIP loan is repaid when the house is sold or when an estate is settled.

7. What are the terms of a CHIP loan?

CHIP provides loans at three percent (3%) simple interest (the interest does not compound). The terms for CHIP owner occupied loans are 25 years, and 15 years for non-owner occupied loans.

8. How is the housing rehabilitation work completed?

The CHIP construction inspector will write a detailed bid specification, which will be competitively bid from an approved list of licensed, bonded and insured general contractors. The construction inspector, along with the owner, monitors all work and approves payments as the work is completed.

9. How can I become a CHIP approved Contractor?

CHIP maintains a list of pre-approved General Contractors. If you are a licensed, bonded, and insured General Contractor and have substantial residential remodeling experience you may qualify to become an approved Contractor.  CHIP is looking for smaller independent remodeling contractors, sole proprietors and the like, that consist of approximately 1 to 5 employees. The ability to prepare and submit competitively priced bids is important.

Unfortunately, CHIP does not maintain a list of specialty sub-contractors and will not accept applications unless you are a general remodeling contractor.

If you are interested, please click here for more information > CONTRACTORS WANTED