Three Rivers Community Action Gap Financing Program

Three Rivers Community Action Gap Financing Program is a forgivable loan for homebuyers in Blue Earth|Brown|Dodge|Faribault|Fillmore|Freeborn|Goodhue|Houston|Le Sueur|Martin|Mower|Nicollet|Olmsted|Rice|Sibley|Steele|Wabasha|Waseca|Watonwan|Winona County, Minnesota, administered by Three Rivers Community Action, Inc. Three Rivers Community Action's Gap Financing program provides need-based down payment and closing cost assistance to income-qualified first-time homebuyers in the 20 counties of southeastern Minnesota. Assistance is a 0% interest, forgivable loan up to $18,500 with a 10-year term, recorded as a second mortgage and due on sale or satisfaction of the first mortgage. Funded by the MHFA Community Homeownership Impact Fund. 0% interest. No monthly payment. Forgivable over 10 years. Helps fill the gap between home price and affordable mortgage amount. Funding comes from Minnesota Housing Finance Agency Community Homeownership Impact Fund.

Three Rivers Community Action Gap Financing Program offers up to $18,500 in assistance. Homebuyer contribution: Minimum $500 of buyer's own funds; FHA buyers must provide the 3.5% downpayment from their own funds. The program can be combined with MHFA Start-Up with DPA, USDA/RD products, local/lender DPA, seller concessions, gifts. Amounts are the program's published maximums, not an offer — Three Rivers Community Action, Inc. determines any individual award.

Three Rivers Community Action Gap Financing Program is forgiven after 10 years, so a homebuyer who stays that long does not repay it. Repayment is triggered by Due on sale of the home or satisfaction (payoff) of the first mortgage; otherwise forgiven over the 10-year term. The assistance is recorded in Second mortgage position. Forgiveness and repayment terms are set by the program and can change — confirm them on the official program page before applying.

Three Rivers Community Action Gap Financing Program is open to first-time homebuyers and homebuyers who will live in the home as their primary residence. "First-time homebuyer" usually means not having owned a home in the last three years, but the program sets its own definition. A homebuyer education course is required, through Home Stretch Workshop or Framework (certificate required prior to closing; class listings at hocmn.org). Per the program's April 2026 guidelines page the Gap Financing fund was reported OUT OF FUNDS as of June 2026 - verify current funding before publishing. Recurring annually via MHFA Impact Fund. Signed purchase agreement and first-mortgage pre-approval required; complete application at least 30 days before closing; buyer minimum $500 contribution; max $10,000 liquid assets retained; equity contribution over 20% disqualifies; no cash back at closing; $500 administration fee.

Three Rivers Community Action Gap Financing Program limits household income to 80% of the area median income, which varies by county and household size. Combined gross household income below 80% of state median income (June 2, 2025): Olmsted & Dodge $100,500; all other counties $93,600. 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.

Three Rivers Community Action Gap Financing Program caps the purchase price as follows: No stated max purchase price; buyers with equity contributions over 20% of purchase price are not eligible. Eligible property types include Single Family, New Construction, and Existing Home. New construction is eligible.

Three Rivers Community Action Gap Financing Program serves homebuyers purchasing in Blue Earth|Brown|Dodge|Faribault|Fillmore|Freeborn|Goodhue|Houston|Le Sueur|Martin|Mower|Nicollet|Olmsted|Rice|Sibley|Steele|Wabasha|Waseca|Watonwan|Winona County, Minnesota.

Applications for Three Rivers Community Action Gap Financing Program go through Three Rivers Community Action, Inc., which publishes the current terms and the application steps on its own site. Funds are reserved through First-come, first-served; no pre-approvals; complete application required at least 30 days prior to closing. 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.