NEW ULM — The Economic Development Authority (EDA) received and approved five application in July for the Home Buyers Assistance Loan Program.

The Home Buyers Assistance Loan Program is a new program started by the EDA this year. The program is available to first-time home buyers who wish to purchase in New Ulm. 

Eligible applicants may be approved for a loan of five percent of the purchasing price, up to $10,000, and it may be applied toward down payment and closing costs. The loan is deferred with a zero interest rate. The loan term is ten years and payments can be deferred for the first five years. The EDA has $50,000 available annually for this program, and it is distributed on a first-come-first-served basis.

During Tuesday’s EDA meeting, Housing Coordinator Heather Bregel said the program has proven popular. The EDA currently has under $8,000 in the program that has not been allocated. 

To date three loans have been paid out, a closing will occur in August, and two approved applicants are house hunting.