Gap program

What is Gap program?

Gap program is a deferred second loan for homebuyers in Zumbrota, Minnesota.

• Three Rivers SE MN regional gap-financing DPA. Up to $35,000 0% deferred second. 9-county service area. Income $62,650-$123,750. Max PP $604,400. 640 FICO. FTHB required.
• The Three Rivers Community Action Gap Program provides up to $35,000 in gap-financing down payment and closing-cost assistance to first-time homebuyers purchasing a primary residence within Three Rivers' SE Minnesota service area (Wabasha, Goodhue, Olmsted, Dodge, Steele, Rice, Houston, Fillmore, and Winona counties). Funded through Minnesota Housing's Impact Fund, federal HOME, CDBG, and local foundation sources, the assistance is structured as a 0% interest deferred second mortgage with no monthly payments. Repayable upon sale, refinance with cash-out, transfer of title, or non-owner-occupancy. Income limits $62,650 (1-person) to $123,750 (4+ person). Maximum purchase price $604,400 (aligned with MN Housing Start Up Twin Cities-area limits).
• Funding comes from CDBG, HOME, State, and Local Government.

Do you have to pay it back?

Gap 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?

Gap program is open to first-time homebuyers and buyers who will live in the home as their primary residence.

What are the income limits?

Gap program limits household income to $123,750.

• 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?

Gap program caps the purchase price at $604,400.

• Eligible property types include Single-family detached, condominium, townhouse, PUD, manufactured home (real-property-titled), 1-2 unit owner-occupied.
• New construction is eligible.
• Manufactured homes are eligible.

Where does it apply?

Gap program serves buyers purchasing in Zumbrota, Minnesota.

How do you apply?

Applications for Gap 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 Three Rivers Community Action - HUD-approved housing counseling agency. Pre-purchase 8-hour homebuyer education (Framework or in-person at Zumbrota/Rochester offices) plus one-on-one counseling required..

2. 2

   Contact the administering agency to reserve funds

   Funds are reserved through Application via Three Rivers Homeownership Department intake., 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.