Shelly Kading

Having outgrown her starter home, Shelly Kading needed something larger at an affordable price. She soon heard about MMCDC and its unique development in Frazee, Minn. She purchased her new home just in time for Christmas.

“The layout of the house worked out perfectly,” she said.

Frustrated by increasing housing development costs, MMCDC worked with several entities to help in creating four quality homes at a lower price. To further reduce the price, buyers have the option of purchasing the home with just the main floor finished, adding a finished basement, and/or building a garage.

For Shelly, it made sense to start finishing the basement immediately to accommodate her two young children. A two-stall garage will be started in the spring. “It’s been fun watching the work being done,” she said.

The financing for the 1,824-square-foot home was complicated. But, she felt it was well-explained by MMCDC’s loan officer. “She broke it down in simple terms,” Shelly said.

MMCDC provided her a long-term, fixed-rate, $130,000 first-mortgage loan. The Northwest Minnesota Housing Cooperative provided an interest-only forgivable second-mortgage of $25,000. Shelly also had equity from her first home to use as down-payment on the $165,000 purchase, but access to other down-payment funds is available to qualified borrowers.

Shelly described the neighborhood as welcoming—as is the city of Frazee.

“This has been a great project to help the expansion of homeownership in Frazee–plus, getting rid of a blighted property,” Mayor Hank Ludtke said. “We look forward to working with MMCDC on future housing projects.”

Additional support for the project was provided by the Minnesota Housing Finance Agency and the federal New Markets Tax Credit program.

MMCDC is seeking buyers for two more homes in Frazee, with construction planned for spring 2018. Contact Natalie for information.

501 Ash Avenue, Frazee, MN