Special Targeted Applicant Rehabilitation Program (STAR)
The Special Targeted Applicant Rehabilitation (STAR) Program preserves and improves single-family properties by rehabilitating the property and updating it to applicable building codes. STAR loans may also be used to build replacement houses under certain conditions. STAR loans are funded with federal HOME funds and certain HUD requirements apply.
Eligible applicants must be owner-occupants of single family homes with incomes at or below 30 percent of the Washington, D.C. Metropolitan Statistical Area (MSA) median income. Consideration may also be given to those families whose income is at or below 55 percent of the statewide median income and have a poor credit rating. (Poor credit rating would prevent such families from obtaining funds through another Special Loan Program.) In exceptional cases, STAR funds may be used for borrowers with incomes of up to 80 percent of the median as defined by the HUD limits.
STAR loans are fully deferred with an interest rate of zero percent. The maximum loan is generally 110 percent of the after rehab value of the property. However, exceptions to the debt to value limit will be considered on a case-by-case basis. The property must meet HUD’s definition of “modest housing”. STAR loans are generally secured by a Deed of Trust. Grants may be considered on a case by case basis.