City of Hutchinson Home Purchase Opportunity Program
The Hutchinson Housing and Redevelopment Authority will review submissions for the SCDP Housing and Affordability Gap Loan as well as the HRA Entry Cost Loan Subordinations. Each submission is carefully reviewed and each decision is meticulously documented. This revolving loan program is designed to assist future homebuyers into ownership — because this is the case, when the first mortgage is completely paid off, the loan is due in full and then payable to help assist another homebuyer. The subordination will only be allowed under these limited conditions:
- Consideration for subordination for those seeking to refinance the first mortgage for a lower interest rate.
- No subordination to a new second mortgage.
- No cash out.
- Current status on payments and property taxes.
- Proposed loan to value ration cannot exceed 100%.
- No increases in first mortgage except refinance fees cannot surpass 3.5% excluding HRA fees and escrow/prepaids payments.
City of Hutchinson – Small Cities Development Program Revolving New Construction Program
The Small Cities Development Program helps cities like Hutchinson with funding for commercial rehabilitation projects, public infrastructure and general housing. The need, impact and cost effectiveness must be properly catalogued and the general public needs to be involved in the application process.
These projects must meet at least one of these three federal objectives:
- Benefit low or moderate income peoples.
- Eliminate poor or slum conditions.
- Eliminate an immediate threat to public health and safety.
- Eligible areas are cities with fewer than 50,000 residents and counties with fewer than 200,000.
The Minnesota program rules subdivide grants funds into three general categories: housing grants, public facility grants and comprehensive grants. The maximum available for a single purpose project is no more than $600,000 — the maximum for a comprehensive project is $1.4 million.
Only cities with fewer than 50,000 residents qualify — counties with fewer than 200,000.
A single purpose project cannot exceed $600,000.
Buying your first home can be overwhelming. Let us help! We are committed to finding you any grant monies or assistance programs available to you. Our buyer agent services are FREE! Please contact us for more information. We have assisted hundreds of first time home buyers and look forward to the opportunity to assist you!