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HHDC Affordable Housing Entry Cost Assistance Program

Headwaters Housing Development Corporation (HHDC) / Headwaters Regional Development Commission (HRDC) · Beltrami; Clearwater; Hubbard; Mahnomen; Lake of the Woods County, Minnesota

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Assistance

$5,000

The maximum the program publishes — not an offer

Income limit

110% AMI

Of area median income; varies by county and household size

Repayment

Repayable

Repaid on the terms set by Headwaters Housing Development Corporation (HHDC) / Headwaters Regional Development Commission (HRDC)

What is HHDC Affordable Housing Entry Cost Assistance Program?

HHDC Affordable Housing Entry Cost Assistance Program is a repayable second loan for homebuyers in Beltrami; Clearwater; Hubbard; Mahnomen; Lake of the Woods County, Minnesota, administered by Headwaters Housing Development Corporation (HHDC) / Headwaters Regional Development Commission (HRDC).

  • The Headwaters Housing Development Corporation (HHDC) Entry Cost Assistance Program helps low- and moderate-income households in the Headwaters Region with up to $5,000 toward down payment and closing costs. The loan carries an interest rate 0.25% below the borrower's first mortgage rate, with interest-only payments for the first 12 months and amortization over 120 months thereafter. Borrowers complete homebuyer education and invest at least $500.
  • Up to $5,000.
  • Rate 0.25% below first mortgage.
  • First 12 months interest-only.
  • Five-county Headwaters Region.
  • Funding comes from Headwaters Housing Development Corporation revolving entry-cost funds.

How much assistance does it provide?

HHDC Affordable Housing Entry Cost Assistance Program offers up to $5,000 in assistance.

  • Buyer contribution: Minimum $500 of own money invested.
  • The program can be combined with other assistance, subject to the rules of each.
  • Amounts are the program's published maximums, not an offer — Headwaters Housing Development Corporation (HHDC) / Headwaters Regional Development Commission (HRDC) determines any individual award.

Do you have to pay it back?

HHDC Affordable Housing Entry Cost Assistance Program is a repayable second loan and is repaid under the terms set by Headwaters Housing Development Corporation (HHDC) / Headwaters Regional Development Commission (HRDC).

  • Repayment is triggered by Amortizing repayable loan over 120 months (10 years); standard monthly repayment.
  • The assistance is recorded in Subordinate position.
  • Forgiveness and repayment terms are set by the program and can change — confirm them on the official program page before applying.

Who qualifies?

HHDC Affordable Housing Entry Cost Assistance Program is open to buyers who will live in the home as their primary residence.

The program requires

  • The home is occupied as a primary residence
  • A completed homebuyer education course, through Homestretch Workshop or Framework Homebuyer Education
  • Residency: Property in Beltrami, Clearwater, Hubbard, Mahnomen, or Lake of the Woods County
  • DRAFT (dpa-gap-finder 2026-06-15): pending admin review. Complete Homestretch or Framework; $500 minimum investment; no more than $7,500 liquid assets after closing; home must appraise for at least $60,000.

The program excludes

  • Households above 110% of area median income

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?

HHDC Affordable Housing Entry Cost Assistance Program limits household income to 110% of the area median income, which varies by county and household size.

  • Household income cannot exceed 110% of state median income (not adjusted for family size); uses MHFA CRV income limits. No more than $7,500 liquid assets after closing.
  • 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?

HHDC Affordable Housing Entry Cost Assistance Program caps the purchase price as follows: Home must appraise for at least $60,000; preference to properties 10 acres or less.

  • Eligible property types include Single Family.

Where does it apply?

HHDC Affordable Housing Entry Cost Assistance Program serves buyers purchasing in Beltrami; Clearwater; Hubbard; Mahnomen; Lake of the Woods County, Minnesota.

How do you apply?

Applications for HHDC Affordable Housing Entry Cost Assistance Program go through Headwaters Housing Development Corporation (HHDC) / Headwaters Regional Development Commission (HRDC), which publishes the current terms and the application steps on its own site.

  1. Take a homebuyer education course

    Required by the program, through Homestretch Workshop or Framework Homebuyer Education.

  2. Contact Headwaters Housing Development Corporation (HHDC) / Headwaters Regional Development Commission (HRDC) to reserve funds

    Funds are reserved through Application-based, subject to fund availability, 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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