Forgivable loans of up to $15,000 and low interest loans of up to $5,000 will be available to assist qualified applicants with down payment costs associated with construction of a new home or the purchase of an existing home. Qualified applicants are those individuals whose combined income falls below $61,700.

Anyone interested in more information please contact the above mentioned cities, the Northwest Minnesota Multi-County HRA in Mentor or your local financial institution such as: Red Lake County State Bank, Red Lake Falls Northwest Community Bank, Plummer Security State Bank, Oklee Brooks Community Federal Credit Union, Brooks.

Red Lake County II Affordable Housing Fund Program Parameters
02/12/2001

1. Maximum household income is 115% of State Median Income, or $66,585 in year 2000.
2. There is NO maximum house and development cost/lot value.
3. The building lot must be no more than 10 acres in size and be no more than 33% of cost/appraisal.
4. Manufactured homes must abide by the Guidelines for Manufactured Homes
5. Borrowers must receive a certificate of completion of the Homestretch program.
6. CRF loans on existing are 10% of the purchase price not to exceed $8,000. CRF loans on new construction will be $8,000.
7. CRF loan term is 5 years 100% forgiven after 5 years.
8. The CRF mortgage is subordinate to that of the RLCAHLF.
9. Pool Loan terms are $5,000 for 10 years at 4.0% interest.
10. CRF funds reserved by entity are as follows: prorated per investor jurisdiction at one CRF grant for each $5,000 invested in the Loan Pool
11. Allocations of CRF funds are as follows: a minimum of 60% of funds are reserved for new homes.
12. CRF funds may only be reserved and restricted to initial jurisdictions until December 1, 2001 at which time they will be redistributed to other entities.
13. Investor contributions are reserved during draw-down, but repayments from loans go into the General pool for new loans.
14. Reservation of investor funds made pursuant to existing agreement.
15. Schedule of load funds draw-down: employers, city, then county (if they work at Homark and are building in Red Lake Falls, Homark pays. If they work elsewhere, are building in Plummer, then Plummer pays, unless they are out of money, then the county pays.)
16. A non-refundable application fee in the amount of $100 will be collected by the HRA.
17. All building lots are valued at $5,000.
18. Applicants must provide HRA with a pre-approval (credit & income) letter from the bank, along with the non-refundable application fee to be put on the reservation list. Applicants will have 30 days to provide HRA with a purchase agreement or construction contract, or provide evidence that they are making substantial progress. HRA will provide materials to the Loan Committee (advisory committee) for their approval. The Advisory Committee will notify HRA of their recommendation and provide HRA with copies of all required application and other materials. HRA will then proceed with loan processing. All applicants are required to provide a title opinion, credit history, and appraisal.
19. Minimum purchase price of $26,000 to be eligible for loans or CRF.
20. Assumable loans or CRF loans are not allowed.
21. County funds can be used throughout the county, including in the city limits.
22. Reiterated 10 acre-rule loans and CRFs could only be used if there is a separate purchase agreements, and appraisal, covering 10 acres or less.

There are a limited number of open slots in the Red Lake County Housing Loan Pool

How your Homark home and Red Lake County Loan Pool can work for you
Average projected cost-home, foundation, lot, garage&&&&&&&&&&..$  80,000
Grant given to the homeowner&&&&&&&&&&&&&&&&&&...less  12,000
Investors loan given to the homeowner&&&&&&&&&&&&&&&.less   5,000
Homeowner would the have to borrow from local bank or lender the balance of& 63,000
$63,000 loan financed at todays rate of 7.875%
at 30-year rate&&&&&&&&&&&&&&&&..fixed monthly payment      456.79
investor $5,000 loan repayment at 4% 10-year&&&&&&&&&&&&&&    51.00
                                                                                                                 $ 507.79

Thinking of buying a new home located in Red Lake County?  You may be eligible for up to $20,000 in grant and loan funds.  If your household gross income is below $66,585 this could be your opportunity to become a new homeowner or move to another home better suited for your family.

 If this offer interests you, call Tina at 218-637-2435 to get more information for the Red Lake Affordable Housing Program (Equal Housing Opportunity Program).
 

First Time Homebuyer Red Lake County

         If you are a first-time homebuyer, live in Red Lake County and have an income
less than $31,600, you could be eligible for a loan at a 7.24 percent interest rate.
         If your household is two, the income guideline is $39,750; and a household of four or more persons has an income guideline of $44,150.
         The loan will have the fixed 7.24 percent rate and it will be a 30-year loan.
         If the home is an existing home, the purchase price cannot exceed $77,540; if it is a newly constructed home the purchase price cannot exceed $131,070.
         Four requirements are:
         You are a first-time homebuyer and can provide three years of federal tax returns or an affidavit that you were not required to file federal taxes.
         You will occupy the home as your primary residence.
         You have a credit history acceptable to your lender.
         Your household income meets the eligibility requirements dependant on household size.
         The first-time homebuyer program of the Northwest Minnesota Multi-County Housing and Redevelopment Authority and is available for residents of Red Lake county.
         The state of Minnesota has $14 million in federal money for the program.  One million dollars has been allocated to the seven-county NW Minnesota area and about $800,000 remains in the fund. Four lending institutions are working with the program, American Federal, Bremer Bank and Crookston National Bank, all of Crookston, and Wells Fargo Home Mortgage of Thief River Falls.
         Some banks chose not to participate in this program because of the paperwork.

Homeownership available with zero down; 0% interest in Oklee

     Inter-County Community Council (ICCC) is taking applications for qualified families to purchase a home in Oklee under the Minnesota Urban and Rural Homesteading program.  Two three-bedroom homes will be available for purchase.  One home is complete now and ready for purchase and another will be ready with in a few months.
     Both houses will be sold on a zero down, 0 percent contract for deed to qualify buyers.  Applicants must meet one or more of the following requirements:

The four slots of  $5,000 each will be awarded to the county residents who buy an existing home or build a new home in Red Lake County.

The additional slot allotments also allow the new homeowners to receive a grant of $15,000 for new construction and a grant of 10 percent of the purchase price, up to $10,000, toward the purchase of an existing home. The $5,000 of county money is paid back, at a low rate of interest, and will be returned to a revolving loan fund.

Twenty-four new homes have been built in Red Lake County under this program.

Lee Meier of the Northwest Minnesota Multi-County Housing and Redevelopment Authority stated that additional money is still available.  He said up to $20,000 in grant and loan funds, for a household that has a gross income of less than $66,585, is available. 

Thinking of buying or building a home?

Thinking of buying or building a home located in Red Lake County?  You may be eligible for up to $20,000 in grant and loan funds.  If your household gross income is below $66,585, this could be your opportunity to become a new homeowner or move to another home better suited for your family.  If this interests you, please call Tina at 218-637-2435 to get more information for the Red Lake Affordable Housing Program (Equal Housing Opportunity Program).

Do you need assistance paying your rent?

The Housing Authority (Northwest Minnesota Multi-County HRA) is now accepting applications from individuals or families who are in need of help paying their rent.  This federally-funded program provides rent assistance to low-income individuals or families.  For an application, call 218-637-2431 or write to the Housing Authority, Box 128, Mentor, MN 56736.