Affordable Housing Entry Cost Assistance Program

What is Affordable Housing Entry Cost Assistance Program?

Affordable Housing Entry Cost Assistance Program is a deferred second loan for homebuyers in Bemidji, Minnesota.

• HRDC's 5-county NW MN regional DPA. Deferred 0% second. Beltrami/Clearwater/Hubbard/LOW/Mahnomen. FTHB required. Income/loan amount per funding cycle.
• The Headwaters Regional Development Commission (HRDC) Affordable Housing Entry Cost Assistance Program provides deferred 0% second-mortgage DPA to low-to-moderate-income first-time homebuyers purchasing a primary residence within HRDC's 5-county region of NW Minnesota: Beltrami, Clearwater, Hubbard, Lake of the Woods, and Mahnomen counties. Funded through Minnesota Housing's Impact Fund, federal HOME, and CDBG, the assistance is structured as a deferred 0% second mortgage with no monthly payments. Detailed loan amount, income limits, and purchase price caps vary by funding cycle and HRDC application round - prospective buyers should contact HRDC directly. Buyers must complete HRDC's homebuyer education and counseling and contribute a minimum of $500 of their own funds.
• Funding comes from CDBG, HOME, State, and Local Government.

Do you have to pay it back?

Affordable Housing Entry Cost Assistance Program is deferred, so no payments are due until the home is sold, refinanced, or the first mortgage is paid off.

• Repayment is triggered by 0% interest deferred second mortgage. Balance due on sale, refinance with cash-out, transfer of title, or non-owner-occupancy.
• The assistance is recorded in 2nd Lien position.
• Forgiveness and repayment terms are set by the program and can change — confirm them on the official program page before applying.

Who qualifies?

Affordable Housing Entry Cost Assistance Program is open to first-time homebuyers and buyers who will live in the home as their primary residence.

What are the income limits?

Affordable Housing Entry Cost Assistance Program sets its income limit as follows: Income limits vary by funding cycle. Generally aligned with 80% AMI HUD non-metro NW Minnesota tier. Contact HRDC for current limits.

• The limit applies to total household income, not only the borrower’s.
• Area median income figures are published by HUD and updated annually, so check the current table for the county before relying on a number.

What kind of home can it be used for?

Affordable Housing Entry Cost Assistance Program caps the purchase price as follows: Per MN Housing Start Up purchase price limits when stacked with MN Housing first mortgage. Specific HRDC cap varies by funding cycle.

• Eligible property types include Single-family detached, condominium, townhouse, PUD, manufactured home (real-property-titled).
• New construction is eligible.
• Manufactured homes are eligible.

Where does it apply?

Affordable Housing Entry Cost Assistance Program serves buyers purchasing in Bemidji, Minnesota.

How do you apply?

Applications for Affordable Housing Entry Cost Assistance Program go through the administering agency, which publishes the current terms and the application steps on its own site.

1. 1

   Take a homebuyer education course

   Required by the program, through Headwaters Regional Development Commission - HUD-approved housing counseling agency. Pre-purchase homebuyer education and one-on-one counseling required..

2. 2

   Contact the administering agency to reserve funds

   Funds are reserved through Application via HRDC Housing Department intake. Pre-purchase counseling required., and are subject to availability.

3. 3

   Work with a lender who handles the program

   Hey Prescott is not a lender and does not accept applications; this page describes the program so a buyer can take it to a lender or housing counselor.