Housing Resource Center

Homes for Sale & Rental Properties

Down Payment and Closing Cost Assistance is available thru Olivia’s EDA Gap Assistance Program

The Assistance Program was create in 2002 to provide a secondary source of funds to home buyers.  The loan can be used for down payment or closing costs. Loans are structured as a second mortgage payable monthly or due when the original mortgage is retired, property is sold or when the borrower no longer occupies the property.

the following are general criteria the Olivia EDA Loan Review Committee uses for determining eligibility  for it’s secondary mortgage:

  1. The home to be purchased must be located in the City of Olivia.
  2. The purchase price of an existing home cannot exceed $75,000, for a new home the purchase price cannot exceed $110,000.  These limits can be extended with a completed certification for families of four or more.
  3. The gap assistance will not exceed $2,800 per home buyer.
  4. Mortgage Structure; the EDA loan is flexible but generally it will be payable with the equal monthly installments over ten years at five percent.  The loan is due when the property is sold, the borrower no longer occupies the property, or when the original first mortgage is paid off.
  5. If a first time home buyer, the buyer just attend and receive certification through the Minnesota Housing Finance Agency Home Stretch First time Home buyer Curriculum.
  6. Generally, homes financed through contract for deed are not eligible for the Olivia EDA’s Gap Assistance Program funds.
  7. The home buyer cannot have liquid assets in excess of $5,000.
  8. A good credit report for the last twelve months.
  9. Household Size / Income Limits
    1,2,3,4/ $44,150
    5 / $47,700
    6 / $51,200
    7 / $54,750
    8 / $58,300

These criteria are established to provide a point of reference for lenders, realtors and home buyers when considering accessing Olivia EDA’s Gap Assistance Program funds.  In special circumstances, the Olivia EDA Loan Review Committee reserves the right to make loans outside the general boundaries established.  Contact the Olivia EDA  at 320-523-1055 or oeda@olivia.mn.us