Three Rivers Community Action Gap Financing Program

What is 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.

How much assistance does it provide?

Three Rivers Community Action Gap Financing Program offers up to $18,500 in assistance.

• Buyer 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.

Do you have to pay it back?

Three Rivers Community Action Gap Financing Program is forgiven after 10 years, so a buyer 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.

Who qualifies?

Three Rivers Community Action Gap Financing Program is open to first-time homebuyers and buyers who will live in the home as their primary residence.

What are the income limits?

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.

What kind of home can it be used for?

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.

Where does it apply?

Three Rivers Community Action Gap Financing Program serves buyers 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.

How do you apply?

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.

1. 1

   Take a homebuyer education course

   Required by the program, through Home Stretch Workshop or Framework (certificate required prior to closing; class listings at hocmn.org)..

2. 2

   Contact Three Rivers Community Action, Inc. to reserve funds

   Funds are reserved through First-come, first-served; no pre-approvals; complete application required at least 30 days prior to closing., 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.