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Austin/Mower County Homeownership Fund (A/MCHF)

Austin, Minnesota

Last verified
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Assistance

$8,000

The maximum the program publishes — not an offer

Income limit

$95,000

The household income limit the program publishes

Price cap

$195,000

Highest purchase price the program allows

Repayment

Repayable

Repaid on the terms set by the administering agency

What is Austin/Mower County Homeownership Fund (A/MCHF)?

Austin/Mower County Homeownership Fund (A/MCHF) is a repayable second loan for homebuyers in Austin, Minnesota.

  • Joint Austin/Mower County DPA. Up to $25,000 0% forgivable (5-yr/20%/yr). Max PP $195,000. Income $85k-$95k. 640 FICO. FTHB required.
  • The Austin/Mower County Homeownership Fund (A/MCHF) is a joint partnership between the City of Austin, Mower County, the Austin Area Foundation, and Hormel Foundation that provides up to $25,000 in deferred forgivable down payment assistance to first-time homebuyers purchasing a primary residence within the City of Austin or Mower County, Minnesota. The assistance is structured as a 0% interest deferred forgivable loan, forgiven 20% per year over a 5-year compliance period (full forgiveness at end of year 5) so long as the borrower maintains owner-occupancy. Maximum purchase price $195,000. Income limits $85,000 (smaller household) up to $95,000 (larger household).
  • Funding comes from Local Government and Foundation.

How much assistance does it provide?

Austin/Mower County Homeownership Fund (A/MCHF) offers up to $8,000 in assistance.

  • The program asks buyers to contribute $1,000 minimum borrower contribution from own funds.
  • The program can be combined with other assistance, subject to the rules of each.
  • Amounts are the program's published maximums, not an offer — the administering agency determines any individual award.

Do you have to pay it back?

Austin/Mower County Homeownership Fund (A/MCHF) is a repayable second loan and is repaid under the terms set by the administering agency.

  • Repayment is triggered by 0% interest forgivable loan, forgiven 20% per year over 5-year compliance period (full forgiveness at end of year 5). Sale, refinance with cash-out, transfer of title, or non-owner-occupancy during years 1-5 triggers proportional repayment of unforgiven balance.
  • 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?

Austin/Mower County Homeownership Fund (A/MCHF) is open to first-time homebuyers and buyers who will live in the home as their primary residence.

The program requires

  • First-time homebuyer — with exceptions: FTHB requirement may be waived for qualifying veterans.
  • The home is occupied as a primary residence
  • On credit: 640 minimum FICO per first-mortgage product overlay.
  • A completed homebuyer education course, through Three Rivers Community Action (regional HUD-approved counselor) - pre-purchase 8-hour homebuyer education and one-on-one counseling required.
  • Residency: Property must be in City of Austin or unincorporated Mower County, MN.
  • Citizenship or immigration status: U.S. citizen, permanent resident, or qualifying non-permanent resident alien per first-mortgage product overlays.
  • First-time homebuyer required (no ownership of a primary residence in the prior 3 years). Property must be located within City of Austin or unincorporated Mower County. Maximum purchase price $195,000. Income up to $85,000 (smaller household) - $95,000 (larger household). Must complete HUD-approved homebuyer education with Three Rivers Community Action. $1,000 minimum borrower contribution. 5-year owner-occupancy compliance period (forgiveness vests 20%/year). Sale, refinance with cash-out, transfer of title, or non-owner-occupancy during years 1-5 triggers proportional repayment.

The program excludes

  • Purchases above the $195,000 price cap
  • Households above $95,000

These are the program's own published rules, not a decision about any individual — the administering agency and a lender determine who actually qualifies.

What are the income limits?

Austin/Mower County Homeownership Fund (A/MCHF) limits household income to $95,000.

  • 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?

Austin/Mower County Homeownership Fund (A/MCHF) caps the purchase price at $195,000.

  • 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?

Austin/Mower County Homeownership Fund (A/MCHF) serves buyers purchasing in Austin, Minnesota.

How do you apply?

Applications for Austin/Mower County Homeownership Fund (A/MCHF) go through the administering agency, which publishes the current terms and the application steps on its own site.

  1. Take a homebuyer education course

    Required by the program, through Three Rivers Community Action (regional HUD-approved counselor) - pre-purchase 8-hour homebuyer education and one-on-one counseling required..

  2. Contact the administering agency to reserve funds

    Funds are reserved through Application via City of Austin Community Development office., and are subject to availability.

  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.

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