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.

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.

Gap program is open to first-time homebuyers and homebuyers who will live in the home as their primary residence. "First-time" has exceptions here: FTHB requirement may be waived in MN Housing federally targeted areas. On credit, the program states: 640 minimum FICO per first-mortgage product overlay. A homebuyer education course is required, 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. Residency requirement: Property must be in Three Rivers 9-county SE MN service area: Wabasha, Goodhue, Olmsted, Dodge, Steele, Rice, Houston, Fillmore, Winona. 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). Income up to $62,650 (1-person) - $123,750 (4+ person). Property must be located within Three Rivers' 9-county SE Minnesota service area. Must complete Three Rivers homebuyer education and one-on-one counseling. $1,000 minimum borrower contribution. Maximum purchase price $604,400. Property must be primary residence within 60 days of closing.

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.

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.

Gap program serves homebuyers purchasing in Zumbrota, Minnesota.

Applications for Gap program go through the administering agency, which publishes the current terms and the application steps on its own site. Funds are reserved through Application via Three Rivers Homeownership Department intake. Hey Prescott is not a lender and does not accept applications; this page describes the program so a homebuyer can take it to a lender or housing counselor.