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City of New Ulm Homebuyer Assistance Loan Program

City of New Ulm Economic Development Authority (EDA) · New Ulm, Minnesota

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See what you qualify forOfficial program site →
Assistance

$10,000

The maximum the program publishes — not an offer

Repayment

Deferred

No payments until the home is sold or refinanced

What is City of New Ulm Homebuyer Assistance Loan Program?

City of New Ulm Homebuyer Assistance Loan Program is a deferred second loan for homebuyers in New Ulm, Minnesota, administered by City of New Ulm Economic Development Authority (EDA).

  • The City of New Ulm EDA offers 0% interest, deferred-payment loans of 5% of the purchase price up to $10,000 to first-time homebuyers who live or work in New Ulm. Funds may be used for down payment and/or closing costs. The loan has a 10-year term with up to 5-year deferred payments and requires a fixed-rate first mortgage.
  • Up to $10,000 (5% of price).
  • 0% interest.
  • Up to 5-year deferred payments, 10-year term.
  • For down payment and/or closing costs.
  • Available to those who live OR work in New Ulm.
  • Funding comes from City of New Ulm Economic Development Authority.

How much assistance does it provide?

City of New Ulm Homebuyer Assistance Loan Program offers up to $10,000 in assistance.

  • The program can be combined with other assistance, subject to the rules of each.
  • Amounts are the program's published maximums, not an offer — City of New Ulm Economic Development Authority (EDA) determines any individual award.

Do you have to pay it back?

City of New Ulm Homebuyer Assistance Loan 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% deferred-payment loan, 10-year term with up to 5-year deferred payments (repayable, not forgivable).
  • Forgiveness and repayment terms are set by the program and can change — confirm them on the official program page before applying.

Who qualifies?

City of New Ulm Homebuyer Assistance Loan Program is open to first-time homebuyers and buyers who will live in the home as their primary residence.

The program requires

  • First-time homebuyer — the program sets its own definition
  • The home is occupied as a primary residence
  • On credit: Must have positive credit history.
  • Residency: Must live in New Ulm and/or work in New Ulm 32+ hours/week; home must be within New Ulm city limits.
  • DRAFT (dpa-gap-finder 2026-06-13): pending review. First-time homebuyer; fixed-rate first mortgage; positive credit history; New Ulm resident and/or 32+ hr/week employee. Requires pre-approval letter + credit report, purchase agreement, and proof of residency/employment. UNCONFIRMED: income limits (fact sheet is a scanned image), asset thresholds.

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

Where does it apply?

City of New Ulm Homebuyer Assistance Loan Program serves buyers purchasing in New Ulm, Minnesota.

How do you apply?

Applications for City of New Ulm Homebuyer Assistance Loan Program go through City of New Ulm Economic Development Authority (EDA), which publishes the current terms and the application steps on its own site.

  1. Contact City of New Ulm Economic Development Authority (EDA) to reserve funds

    Funds are reserved through Funds are limited., and are subject to availability.

  2. 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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