Mower County is now one of six counties in the state that offers Homesteps.

The program provides low-income subsidized housing for residents training to become potential homeowners.

"I applied for the grant last summer," said Julie Ackland, Family Housing specialist with the Housing and Redevelopment Authority of Austin.

The Minnesota Housing Finance Agency, which has been dealing with housing needs since 1971, granted $30,000 for the program.

In order to qualify for Homesteps, several requirements must be met including:

n Live in public housing in Mower County. Subsidized housing includes Section 8 developments such Bremerton and Murphy's Creek.

n Meet all income requirements established by MHFA

n Be a first-time home buyer, meaning to not have owned or have interest in a home for the past three years.

n Attend a certified home buyer training class.

n Be willing to contribute a minimum of $1,500 savings toward the down payment of closing costs.

Included in the program is a package, for those eligible, for a single loan that assists with the down payment and closing cost, according to a MHFA memo.

Those qualifying, attend a series of six mandatory classes or 18 hours.

During the classes, people learn about banking, money management and how to look at a home.

Ackland said guest speakers such as house inspectors and other experts are brought in to give suggestions and guidance.

After the six classes are completed, qualifiers take a certified home buyer training class, such as Home Stretch, with the Semcac Agency. The cost of these range from $50 to $75.

"I would suggest after they finish the six classes, go to the bank and see if they are eligible for a mortgage loan. Once the bank has approved a loan, take the other class and they can go out and look at homes. The HRA then goes and inspects the home to see if it's safe and all those common-sense items," Ackland said.

Participants also have a free hour-long credit session through the University of Minnesota Extension Office at the Mower County courthouse. In the session, participants can learn how to build financial skills, set and use a spending and savings plan, communicate with creditors and manage money, according to the Homesteps brochure.

Carmen Thompson, program associate, said it is basically looking at the participants' finances and how they can make better use of the money they have.

"The process all together can take up to two years to complete and become a homeowner," Ackland said.

Limited funding probably explains why only six counties have this type of program, Ackland said.

"We are lucky to get this program because it is not offered everywhere," she said.

Currently there are 12 people enrolled in Homesteps.

With a six-month waiting list for those seeking public housing, Ackland said the purpose is to get people to become homeowners and open up space for others that need the assistance as well.

"Sometimes the wait can be longer. Things have slowed down with housing because of the economy," Ackland said.

Sterling Bank has agreed to work with HRA in the program, Ackland said.

The HRA will have to apply for the grant once again next year in order to receive it.

Homesteps classes are three hours long at 6 p.m. every Wednesday at the Austin HRA offices. The first class was Dec. 18. Classes will resume after New Year's Day as follow:

n Jan. 8: Budgeting and Saving, Electrical

n Jan. 15: Basic Banking Plumbing

n Jan. 22: Heating System of a House, Credit General

n Jan. 29: Tools and resources for home repair

n Feb. 5:

Field Trip

Missed classes will have to be made up. For information on the program call the HRA offices at (507) 433-1866.

Roxana Orellana can be reached at 434-2214 or by e-mail at mailto:roxana.orellana@austindailyherald.com