The mayor and the Common Council strike a compromise to provide loans to Milwaukee homeowners who are here for the long haul.

Milwaukee homeowners faced with the need to make major repairs could soon be getting help in a big way from the city’s Strong Homes Loan Program.

The new program aims to help those who lack the savings or sufficient equity to secure a loan. Up to $20,000 in loans will be available on a first-come, first-served basis to homeowners who agree to occupy their property for 10 years. If they do, a quarter of the loan’s principal will be forgiven, with interest no higher than 3 percent.

“It essentially makes gap financing available to people who absolutely have the ability to repay a loan but are not able to access conventional credit because they’re ‘underwater,’ or on a fixed income,” says Aaron Szopinski, city housing policy director. “Knowing that the banking sector is not jumping into this kind of work, the city decided it was important enough to put some serious funding into it.”