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Housing – Live in Preston


City of Preston Housing Resources

  • City of Preston Housing Needs Assessment 2018 – Download
  • Fillmore County Housing Study 2019 – Download 
  • City of Preston Economic Development Authority – Learn More
  • City of Preston Planning and Zoning Department – Learn More

Preston Rental Information

  • Contact City Hall to inquire about property owners. 507-765-2153
Home Buying Tools

Remember to layer and use more than one tool to assist you in the home buying process.

  • Preston’s  Housing Incentives
    The Preston Economic Development Authority facilitates a City Housing Incentive to promote new construction. Contact the Preston EDA at 507-765-2153 for more details. The incentive may include energy savings, free utilities, Preston Bucks, golf club memberships, Preston pool passes and permit fee reductions.
Rural Development Single Family Housing Program

Minnesota Housing Programs – Minnesota Housing is a trusted state agency that works with local lenders to ensure all Minnesotans have access to safe and affordable housing. In 2018, we helped more than 4,600 families across the state purchase and refinance homes.

Start Up for First-Time Home Buyers

Ready to purchase your first home?

The Start Up program is for first-time homebuyers, defined as those who “have not had an ownership interest in a principal residence in the last three years.” If you’ve never owned a home, or it’s been more than three years since you’ve been a homeowner, you may be considered a first-time homebuyer.

To learn more, meet with a participating lender to discuss Start Up program guidelines and options, including:

If you are a first-time homebuyer but exceed the income or purchase price limits for Start Up, you may be able to qualify under the Step Up program. Get started on your path to homeownership! Contact a participating lender with questions about your eligibility and learn more about which Minnesota Housing program may be right for you.

Step Up for Repeat Home Buyers or Refinancing

If you’re not a first-time homebuyer – or you’re a first-time homebuyer who exceeds the income and purchase limits for Start Up – the Step Up program might be a great option for you.

To learn more, meet with a participating lender to discuss Step Up program guidelines and options, including:

  • Income limits
  • Downpayment and Closing Cost Loan options – up to $18,000 available!
  • Minimum credit score
  • Owner-occupancy requirement
  • Purchase price limits
  • Completion of homebuyer education (if all borrowers are first-time homebuyers)

Get started on your path to homeownership! Contact a participating lender with questions about your eligibility and learn more about the Minnesota Housing Step Up program.

Down Payment and Closing Cost Loans

When you qualify for a loan and are eligible for the Minnesota Housing Start Up or Step Up programs, you also have the option to access one of downpayment and closing cost loans. These loans, which can range in amounts from $16,500-$18,000, are not grants, must all be repaid in full, have eligibility requirements of their own, and can only be used with a Minnesota Housing first mortgage.

This chart describes the main features of our three downpayment and closing cost loan options.

Terms Monthly Payment Loan Deferred Payment Loan Deferred Payment Loan Plus
Availability Start Up or Step Up Start Up only Start Up only
Loan Amount Up to $18,000 Up to $16,500 Up to $18,000
Interest Rate and Repayment Terms 10 year repayment term
Equal to your first mortgage rate		 No interest, no monthly payments. Balloon payment due in full at the end of the mortgage term.* No interest, no monthly payments. Balloon payment due in full at the end of the mortgage term.*
Income Limits Income limits Income limits Income limits

* Interest-free deferred balloon loan must be fully repaid in a lump sum at the end of the mortgage term, or when the borrower moves, the property is sold or refinanced (unless refinancing with our Step Up program) or the first mortgage is paid off.

Contact a participating lender who can assist you with a Start Up or Step Up loan to discuss additional guidelines and requirements for Minnesota Housing downpayment and closing cost loans, and learn more about which second mortgage option is best for you!

Fix Up Loan Program

Whether you need to make necessary repairs or simply want to update your home, a Fix Up loan can finance most home improvement projects. The Fix Up loan’s affordable, fixed interest rates and longer repayment terms (up to 20 years on some loans) means lower and more affordable monthly payments.

Additional Program Features

  • Loan amounts from $2,000 to $75,000
  • Secured and unsecured loan options
  • Little to no equity in your home needed
  • No income limits for energy or accessibility loans
  • Finance projects already started, or that were completed within 120 days
  • Hire a contractor or do the work yourself
  • No prepayment penalty

Program Requirements

Fix Up program requirements include:

  • Income limits (No income limits for energy and accessibility loans)
  • Minimum credit score
  • Owner-occupancy requirement

Eligible Projects

Your lender determines project eligibility. Single-family, duplexes, triplexes, and fourplexes are eligible.

Examples of eligible projects include:

  • Porches and decks
  • Bathroom or kitchen remodels
  • Basement refinishing
  • Furnace, boilers, water heaters and central air conditioning
  • Windows and siding
  • Insulation
  • Roofs
  • Tree removal or trimming, or property regrading
  • Septic system repairs or replacement
  • Mold and radon mitigation
  • Accessibility improvements
  • Garages
  • Home additions
  • Accessory dwelling unit construction (internal and attached)
  • And More (Contact your approved lender to find out more eligible improvements!)

How to get a Fix Up Loan

Use our Lender Directory tool to find an approved Minnesota Housing participating lender. You will work directly with your lender from pre-qualification to closing on your Fix Up loan.

PACE: Property Assessed Clean Energy (PACE) program
in the state of Minnesota.

This program was created by the state legislature as a funding mechanism for renewable energy and energy efficiency upgrades for businesses and non-profits. Fillmore County passed a joint powers agreement with the St. Paul Port Authority making this program available to Preston businesses.

The process generally starts with an energy use assessment. These can be any of the energy efficiency options available through Preston Public Utilities, or some other no-cost options available throughout the state.

Here are a couple of links to learn more about the program, and read about some examples of its use in the region:

USDA Housing Programs

Single Family Housing Repair Loans and Grants provide funds to elderly and very-low-income homeowners to remove health and safety hazards, perform necessary repairs, improve or modernize a home, make homes accessible for people with disabilities, or make homes more energy efficient so these very-low-income families use less of their income on utility bills.

  • Age 62 or above grant program
  • Purchasing a home
  • Home rehabilitation, income qualified

Single Family Housing USDA Links

Senior Living Resources
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Some of the photos contributed by Bob Smock.