First-time homebuyers in Freeborn County will again be eligible to apply for low-interest housing loans through the Minnesota Cities Participation Program in 2011.

Jon Ford, executive director with the Albert Lea Housing and Redevelopment Authority, told the Freeborn County Board of Commissioners on Tuesday that about $463,000 has been allocated to the county this year.

According to Ford, these funds are being set aside for county residents through federal funding, meaning the county will not be asked to provide bonding money up front as in past years.

He said about $3 million in loans for first-time homebuyers have been written under this program in Freeborn County over the past four years. That does not include 2009, when the program was not offered because of state budget cuts.

Ford said that last year, about $463,000 was allocated for first-time homebuyers in Freeborn County. However, about $475,000 ended up being written in home loans in the county through the program.

“Local governments from across the state can apply for these funds, but then some of them don’t use it,” said Ford. “Money left over from those allocations then go to other local governments.”

Ford called this “overutilization” of the program and said Freeborn County has been able to obtain funding above and beyond the original allocations each year since it’s been a countywide program.

The benefit of this financing program is that those who qualify as first-time homebuyers, and meet other eligibility requirements, can get a lower fixed interest rate than many local lending institutions can offer. He said the going rate now is 4.5 percent. In Freeborn County, funds can be accessed through Minnesota Housing Finance Agency approved lenders, including Wells Fargo Bank, Wells Federal Bank, U.S. Bank, American Bank and Home Federal Savings Bank.

Ford also said because of tight restrictions on lending, the program has seen a less than 4 percent foreclosure rate in Freeborn County.

“The guidelines are tight, so we’re not setting people up to fail,” Ford said.

Ford encourages anyone interested in applying for funding as a first-time homebuyer under this program to talk with local mortgage professional.

In additional business, the board:

• Heard an update from Freeborn County Engineer Sue Miller, who reported that she expects to open up bidding on April 12 for construction on the bridge in Moscow Township. She estimated completion of the bridge around Sept. 15.

• After a public hearing with no comments from the public, passed resolutions ordering redetermining of benefits on Freeborn County Ditch No. 17 and Freeborn County Ditch No. 55.

• Approved local option abatement applications as applications for local option disaster credit.

• Authorized Semcac to submit an application for grant funding for Freeborn County under the Minnesota Housing Finance Agency’s Family Homeless Prevention and Assistance Program. According to Semcac Outreach and Emergency Services Director Wendy Todd, last year, $27,000 in FHP funds were spent directly on housing assistance for 81 individuals and 35 households in Freeborn County.