Down Payment Assistance Programs
Twin Cities Metro Area
Houses for Heroes Homebuyer Assistance
Houses for Heroes provides Reservists and National Guard members who are currently deployed in the Global War on Terror, or who have returned from deployment, with up to $20,000 in assistance to purchase a home in the Twin Cities 7 country metro area. Funds may be used toward the cost of down payment, normal and usual closing costs and for certain types of improvements to the home. The assistance is provided in the form of a no-interest, deferred loan with no monthly payments. The loan is forgiven at a rate of 20% per year for up to five year as long as the home buyer resides in the purchase property. After five years the loan is totally forgiven. Click here for the application.
City of Brooklyn Center
ReNew Buyer Incentive Program Deferred Loan
The ReNew Loan provides a $10,000 no-interest deferred loan to purchase a foreclosed single-family home. The loan is forgiven at the end of five years if the borrower resides in the home as their principal residence during the entire five years. The ReNew loan may be used for down payment, closing costs, or home repairs when used in connection with any prime ‘A’ fixed-rate mortgage. Income limits apply. Click here for the application.
ReNew Buyer Incentive Program Grant
The ReNew Grant offers a grant of 3.5% of the acquisition cost (purchase price plus rehab costs) up to $7,000 to be used for down payment and closing cost assistance. Buyer must be using a FHA 203k Purchase Rehab loan, or other approved purchase rehab loan. Property must be foreclosed and registered as vacant. Income limits apply: 1-2 member households $83,900; 3 or more household members $96,485. Click here for the application.
Community Fix Up Loan
The City of Brooklyn Center is offering a special low-interest home improvement loan in partnership with the Minnesota Housing Finance Agency. Owner-occupied households, from single-family up to four units, with an annual income at or below $99,500, can borrow up to $50,000 at a 3% interest rate. Loan term can extend to 20 years. Funds may be used to repair or remodel your home, including energy-saving improvements. This low interest rate is available for a limited time, contact the Housing Resource Center–North for interest rate updates.
Also available is an unsecured loan up to $15,000 with no equity requirement for a higher interest rate
Contact HousingResource Center™ – North at 612 588-3033
City of Minneapolis
Down payment and closing cost assistance for up to $5,000 is available for homebuyers in the Hawthorne Neighborhood. The loan is forgivable if the buyer occupies the home for at least 10 years. Residential properties containing no more than 1 to 4 dwelling units are eligible. The property must become owner occupied at close of sale. No income limits apply. Click here for application.
McKinley Homebuyer Assistance Program
Down payment and closing cost assistance for up to $4,000 is available for homebuyers in the McKinley Neighborhood. The loan is forgivable if the buyer occupies the home for at least 5 years. Single-family homes, duplexes, condominiums, and town homes are eligible. No income limits apply. Click here for the application.
Contact HousingResource Center™ – North at 612 588-3033
Central Homebuyer Assistance Loan
Down payment and closing cost assistance for up to $5,000 for a standard purchase or $10,000 for a vacant home purchase is available for 1 to 2 unit properties in the Central Neighborhood. The property can be owner-occupied or a rental property. Properties must be rehabilitated if required by the City to comply with zoning and code requirements. The loan is 0% interest deferred. The entire amount is forgiven if the borrower continues to own the property for 5 years following the close of the loan. Click here for the application.
Sheridan Homebuyer Assistance
Down payment and closing cost assistance for up to $5,000 is available for households at or below 80% of HUD’s area median income. The home may be 1 to 4 units and must be owner-occupied. The loan is 0% interest deferred. The entire amount is forgiven if the homeowner resides in the property for six years following the close of the loan. Click here for the application.
Homeownership Opportunity Minneapolis (HOM)
Homeownership Opportunity Minneapolis (HOM) provides down payment and closing cost assistance to homebuyers purchasing a home in any neighborhood in Minneapolis. Depending on income, homebuyers can receive up to $7,500 in a no-interest, deferred loan that is forgiven after five years in the borrower remains in the property during this time Click here for the application.
Ventura Village Homebuyer Assistance
This program can be used to finance the purchaser’s closing costs, and/or be applied towards the actual purchase price of the property. The property must be located in the Ventura Village neighborhood. The property must be homesteaded and owner-occupied by the applicant. Single-family homes, duplexes, condominiums, and townhomes are eligible. Purchasers of a property through a Community Land Trust or purchasers of a co-operative are ineligible. No match is required. The maximum loan amount is $5,000 and the minimum amount is $2,000. There is a 0% interest rate and the loan is forgiven after 5 year if the property remains owner-occupied during the five year period. Click here for the application.
Contact HousingResource Center™ – South at 612 722-7141
City of Woodbury
Woodbury First-Time Homeownership
First-time home buyers can qualify for a loan up to $25,000 to use for down payment and closing costs on a single-family home, condominium, town home, or twin home with a maximum purchase price of $275,000. Income limits apply. Click here for the application.
Woodbury Foreclosure Purchase Program
Home buyers purchasing a property that has been foreclosed can qualify for a loan up to $25,000 for down payment and closing costs on a single-family home condominium, town home, or twin home with a maximum purchase price of $275,000. Income limits apply. Properties must be in a foreclosed status with the loan recipient as the first owner-occupant, OR the property must be in foreclosure prior to sheriff’s sale. Click here for the application.
Both of the above loans have a 3% fixed interest rate with interest-only monthly payments. Seniors and Veterans shall have an interest rate of 2.75%. The principal will be deferred until the maturation of the first mortgage, the sale of the home, the transfer of title or the property is no longer owner-occupied. From their own funds and/or seller paids, the homebuyer must conbribute 5% of the purchase price. The first mortgage must be a prime/A-rated fixed rate mortgage loan.
Contact HousingResource Center™ – North & East Metro at (651) 486-7401