First Homes Community Land Trust (CLT) Homeownership Program

What is First Homes Community Land Trust (CLT) Homeownership Program?

First Homes Community Land Trust (CLT) Homeownership Program is a shared-appreciation loan for homebuyers in Rochester, Minnesota, administered by First Homes Properties (an initiative of Rochester Area Foundation).

• First Homes is a Community Land Trust operating since 2000 across a 7-county area centered on Rochester, MN. First Homes subsidizes homes below market value and sells the structure (not the land) to buyers at or below 80% AMI, who sign a 99-year renewable ground lease ($25/month). At resale, the price is capped by a formula (Base Price + 50% of appreciation), preserving affordability for the next buyer while letting sellers keep 100% of earned equity and 50% of appreciation. 300+ homes are in the program.
• Below-market purchase price.
• Equity from mortgage paydown plus 50% of appreciation.
• 99-year renewable ground lease at $25/month.
• Typically no PMI.
• Access to MN Housing and First Homes Gap Loan DPA.
• Perpetual affordability via resale formula.
• Funding comes from Private contributions, government grants, Rochester Area Foundation.

Do you have to pay it back?

First Homes Community Land Trust (CLT) Homeownership Program is a shared-appreciation loan and is repaid under the terms set by First Homes Properties (an initiative of Rochester Area Foundation).

• Repayment is triggered by Resale formula activates on sale; seller receives 100% of earned equity (mortgage paydown) plus 50% of market appreciation; remaining 50% stays in the home to preserve affordability.
• Forgiveness and repayment terms are set by the program and can change — confirm them on the official program page before applying.

Who qualifies?

First Homes Community Land Trust (CLT) Homeownership Program is open to buyers who will live in the home as their primary residence.

What are the income limits?

First Homes Community Land Trust (CLT) Homeownership Program limits household income to 80% of the area median income, which varies by county and household size.

• At or below 80% AMI. Olmsted & Dodge Counties: $106,800 (6/1/2026); other 5 counties: $95,100. Asset limit $50,000 (excluding retirement accounts).
• 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?

First Homes Community Land Trust (CLT) Homeownership Program caps the purchase price as follows: Homes priced by First Homes using the CLT resale formula (not open-market). No published maximum; price set by First Homes based on subsidy and formula.

• Eligible property types include Single-Family Detached, Townhome, and Condo.
• New construction is eligible.
• Manufactured homes are not eligible.

Where does it apply?

First Homes Community Land Trust (CLT) Homeownership Program serves buyers purchasing in Rochester, Minnesota.

How do you apply?

Applications for First Homes Community Land Trust (CLT) Homeownership Program go through First Homes Properties (an initiative of Rochester Area Foundation), 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 Three Rivers Community Action; Minnesota Homeownership Center (HOME); SEMMCHRA. In-person or online..

2. 2

   Contact First Homes Properties (an initiative of Rochester Area Foundation) to reserve funds

   Funds are reserved through Registration form submitted to First Homes; staff contact applicants re: eligibility and available homes., 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.