Applications Now Paused
Forgivable First Generation Homebuyers
Community Down Payment Assistance Fund
The First-Generation Homebuyers Community Down Payment Assistance Fund will reopen soon. Sign up here to receive updates when the application reopens.
Work through the steps below to take advantage of this new funding source.
The Application Process
Applicants must complete steps 1-3 above before applying.
The First-Generation Homebuyers Community Down Payment Assistance Fund will reopen soon. Sign up here to receive updates when the application reopens.
How Does It Work?
Eligible recipients can receive up to ten percent of a home’s purchase price, capped at $32,000.
The down payment assistance provided under this program is a zero-interest loan that is forgiven over five years (20% forgiven each year), as long as the homebuyer lives in the home as their primary residence.
You can purchase a 1–2 unit home located in anywhere Minnesota. Shared equity, community land trusts and other resale restricted purchases are permitted.
This program does have maximum purchase prices. This means that if you buy a one-unit home in the 11-county metro, the home cannot cost more than $515,200, and a 2-unit home cannot cost more than $659,550. If you buy anywhere else in the state, a one-unit home cannot cost more than $472,030, and a 2-unit home cannot cost more than $604,400.
How Do I Apply?
You can apply by clicking the “Apply Now” button at the top of this page.
There are several things you need to do before applying to the program:
- Complete a homebuyer education workshop. Within the last 12 months, all buyers and their spouses must complete an approved workshop. Approved courses include Home Stretch and Realizing the American Dream. The workshop must be completed before you make an offer on a home. You’ll submit your Certificate of Completion with your application.
- Get preapproved for a fixed-rate mortgage. We recommend doing this after completing your homebuyer education workshop. You can apply with any lender. [Note: Sharia Compliant and ITIN mortgages are accepted.] Your first mortgage lender will complete a pre-approval form that you’ll submit with your application.
- Consider working with a Homebuyer Advisor (optional). A Homebuyer Advisor can assess your mortgage readiness and help create a personalized ‘road-map’ to secure a competitive interest rate. These services are free and available to anyone in Minnesota
Note: If you plan to add someone to Title, please talk to your first mortgage lender to learn about additional requirements.
Applications are accepted on a first come, first served basis. Having your application accepted is NOT a guarantee that you will receive funds, but rather the first step in a multi-step process. Once this process is complete, approved applicants will have funds reserved for 90 days. Once you are approved for funds, you can start shopping for a house using the Realtor® of your choice.
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First-Generation Homebuyers Community Down Payment Assistance Fund.