Homebuyer & Homeowner Programs
Otter Tail County has housing finance programs available to homebuyers, homeowners, and property owners to build, buy, and remodel homes. Additional programs and resources are detailed below from housing partner agencies to buy, remodel, refinance, and own a home.
Building a Home
Down Payment Assistance
Down Payment Assistance creates homeownership opportunities for qualifying households. Up to $15,000 of down payment assistance can be used for the purchase of an existing home or the construction of a new home meeting criteria.
View full program guidelines before completing an application.
For more information, contact Kelly Miller at 218-998-8733 or [email protected].
Property Tax Refund
Property Tax Rebates in participating cities provide a refund of future property taxes for the construction of new homes. Contact participating cities to review local program guidelines and request application forms. The following cities offer property tax rebates:
Community-Specific Incentives
Communities within Otter Tail County offer their own incentives to build a new home such as down payment assistance, waived fees, and reduced lot prices.
Permits and Getting an Address
Building Outside City Limits
Building in City Limits
Contact the city about permits needed to start building and getting a property address.
Buying a Home
Down Payment Assistance
Down Payment Assistance creates homeownership opportunities for qualifying households. Up to $15,000 of down payment assistance can be used for the purchase of an existing home or the construction of a new home meeting criteria.
View full program guidelines before completing an application.
For more information, contact Kelly Miller at 218-998-8733 or [email protected].
Homebuyer Education
The Framework homebuyer course is a comprehensive online course that covers the basics of the home buying process. It meets HUD guidelines and is accepted by most local and national mortgage products and first-time homebuyer incentives that require education. The course is available in English and Spanish and works great on a mobile device like your smartphone or tablet.
Similar educational information is available through in-person workshops and advisors. Find more on these resources on Minnesota Homeownership Center’s website.
First-Time Homebuyer Loans
Minnesota Housing has participating lenders throughout Otter Tail County that offer loans to help you purchase your first home. Contact your lender or banker to find out if they can help with the following Minnesota Housing programs or look at the full list of participating lenders.
Down payment and Closing Cost Loans: Down payment and closing cost loans are available if you get a Minnesota Housing first mortgage loan so that a down payment doesn’t stand in your way of buying a home.
Start Up Loan Program: The Start Up loan program can make homeownership fit your budget with affordable interest rates, down payment and closing cost loans, and low mortgage insurance options to lower your monthly payment. To be eligible you must be a first-time homebuyer (or have not owned a home in three years) and meet income limits, purchase price limits, and minimum credit score requirements.
Repeat Homebuyer Loans
Minnesota Housing has participating lenders throughout Otter Tail County that offer loans to help you purchase your next home. Contact your lender or banker to find out if they can help with the following Minnesota Housing programs or look at the full list of participating lenders.
- Step Up Purchase Loan: Current homeowners looking to buy a new home or refinance their current home can take advantage of the Step Up loan program. This program offers affordable interest rates, down payment and closing cost loans, and low mortgage insurance options for lower monthly payments. To be eligible you must meet income limits, purchase price limits, and minimum credit score requirements.
- Down payment and Closing Cost Loans: Down payment and closing cost loans are available if you get a Minnesota Housing first mortgage loan so that a down payment doesn’t stand in your way of buying a home.
Rural Home Loans
The Rural Development office of the United States Department of Agriculture has a home purchase program called Rural Home Loans for low- and very-low-income applicants. Also known as the Section 502 Direct Loan Program, this provides payment assistance, a type of subsidy that reduces the mortgage payment for a short time, to increase an applicant’s repayment ability.
Community-Specific Incentives
Communities within Otter Tail County offer their own incentives to buy a home such as down payment assistance, waived fees, and community benefits.
Rehabbing or Remodeling a Home
Owner-Occupied Rehabilitation Loans
Zero percent interest loans up to $30,000 are available to homeowners rehabbing their homes.
View full program guidelines before completing an application.
For more information or to request an application, contact Mitch Harry at 218-998-8736 or [email protected].
Emergency Home Repair
Deferred loans are available to homeowners for repairing or replacing failing or near failing systems including well, septic, electrical, plumbing, roof, windows, heating system, water heater, radon mitigation, and mobility modifications for physically disabled residents of the household.
View full program guidelines before completing an application.
For more information or to request an application, contact Mitch Harry at 218-998-8736 or [email protected].
USDA Housing Repair Loans & Grants
The Rural Development office of the United States Department of Agriculture has funds available for its Single-Family Housing Repair Loans and Grants program. Also known as the Section 504 Home Repair program, this provides loans to very-low-income homeowners to repair, improve, or modernize their homes or provides grants to elderly very-low-income homeowners to remove health and safety hazards.
Refinancing a Home
You can use the Minnesota Housing Step Up loan program to refinance your current home at an affordable, fixed rate. Contact an approved lender for more information on the program.
Owning a Home
Homeowner Education
Information for homeowners on understanding mortgage statements, home safety, refinancing, home maintenance, and more is available from Framework Homeownership.
Information on refinancing, foreclosures, and reverse mortgages is available from the Minnesota Homeownership Center.
Energy Assistance
MAHUBE-OTWA offers an energy assistance program to help low-income households pay home heating bills. Otter Tail County residents may be eligible if they:
- Meet income limits based on household size
- Rent or own their home
- Can provide proof of income when they apply
Repair or replacement of nonfunctioning heating systems may also be available.