Affordable Housing Trust Fund

Homebuyers Assistance Loan Program

The Red Wing HRA is accepting applications for its AHTF Homebuyers Assistance Program.

Funding for this program is made available through the Red Wing Affordable Housing Trust Fund (AHTF).  The AHTF Memorandum approved by the HRA and City has a preference for funding opportunities for workforce housing, which means at least one member of the applying household must be employed as full-time to be eligible for this loan.   The City Council and Red Wing HRA Board approved an allocation for $63,000 to be used in 2021.  Applications are being accepted now and will continue until all funding is expended.

The purpose of the program is to assist low and moderate-income workforce families with the purchase of affordable housing in the City of Red Wing.  This program will provide financial assistance to households who have income at or below 115% of the area median income.  Eligible households can receive up to $9,000 for homebuyer assistance based on need.  The applicant must have at least $1,000 of their own equity in the home purchase.

The homebuyer assistance will act as a deferred loan at zero percent interest.  This means that the borrower will not need to make monthly payments on this loan.  However, the loan is not forgivable.  It must be paid back by the homeowner upon the sale of the house, vacating the house as a primary residence, or at the expiration of the 30-year term.

Applicants will be processed as received on a pipeline basis.  The program will continue until the $63,000 is allocated to applicants.

The AHTF Guidelines, Budget Worksheet, and Application links are here: Homebuyer Assistance program AHTF Guidelines June 2023  Budget worksheet  AHTF Homebuyer Assistance Program Application

We recommend reading the Guidelines before beginning the application process.  Program is subject to change.