Town Talk: EDA housing programs

The New Ulm Economic Development Authority (EDA) has two new programs to assist with a home purchase.

The first program is Down Payment Assistance for Garden Terrace Residents who wish to purchase a home in New Ulm. For residents at Garden Terrace Apartments, for each monthly rent payment made, the EDA will give a $200 credit, up to $5,000. Credit amount will be calculated based on number of months of residency. The credit can be used toward the purchase of a home, provided the renter meets the terms and conditions for the program. Residents must fulfill the lease term and be in good standing. There are no income limits for this program, and there is no obligation to repay the EDA. The EDA has made $25,000 available annually for this program on a first come first served basis.

The second program is a Homebuyer Assistance Loan Program. This program is available to first time homebuyers who wish to purchase a home in New Ulm. There are no income limits for this program. For applicants who meet the eligibility requirements, a loan may be approved for 5% of the purchase price, up to $10,000, and 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. Homebuyer must use a local lender and be pre-qualified for a mortgage. Once an application has been processed and pre-approved, homebuyers will have 120 days to find a qualified home to purchase. Final approval will be determined once all necessary paperwork has been submitted and reviewed by the EDA. The home must be owner-occupied for the life of the loan. If the home is sold prior to loan payoff, the remaining loan balance is due in full. The EDA has made $50,000 available annually for this program on a first come first served basis.

If you feel that our office can help you in any way, please contact us at:

100 North Broadway, New Ulm, MN 56073

(507)359-8227

nueda@newulmmn.gov

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Editor’s Note: The City of New Ulm presents a weekly column highlighting activities in different departments in the city government. Once a month the city will answer questions from readers. Questions on New Ulm city issues can be sent to comments@ci.new-ulm.mn.us.

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