** Coming to Minnesota in 2024 **
Forgivable First Generation Homebuyers
Community Down Payment Assistance Fund
Homeownership is the #1 way families build wealth in America. But too many Minnesotans have historically been shut out of this dream. As a result, Minnesota is left with stark racial wealth and homeownership gaps that are among the highest in the country.
It’s time to change this legacy.
Launching in 2024, a new, forgivable, statewide First-Generation Homebuyers Community Down Payment Assistance Fund will help to put the wealth-building power of homeownership within reach for more Minnesotans.
How Does It Work?
- In May of 2023, the state of Minnesota established a new, forgivable, First-Generation Homebuyers Community Down Payment Assistance Fund.
- This fund provides up to ten percent of the home’s purchase price (capped at $32,000) in down payment assistance to eligible homebuyers across the state.
- The funds are a zero-interest loan that is forgiven over five years, so long as the buyer lives in the home as their primary residence.
Who Can Qualify?
- For the purposes of this fund, “first-generation” includes someone who has never owned a home, or who owned a home at one point and lost it due to foreclosure AND whose parent or prior legal guardian never owned a home, or owned a home and lost it due to foreclosure.
- In addition to being a first-generation buyer, the buyer’s income must be at or below 100 percent Median Income.
- The focus on first-generation homebuyers with lower income is very deliberate, as this buyer is the least likely to be able to afford or have access to generational wealth to help fund down payment and closing costs.
- The fund will be available to any first-generation homebuyer as defined above, regardless of race.
How to Get Ready
You can Get Ready now, so you can Be Ready when the First Generation Homebuyers Community Down Payment Assistance Fund comes online in 2024!
- Sign up for a Home Stretch© homebuyer education class to learn about the entire home buying process – from the impact of credit scores on the mortgage application process to the importance of having a home inspection and how to find a good Realtor®.
- Enlist the free services of a Homebuyer Advisor who can assess your mortgage readiness and create a personalized ‘road-map’ to achieving successful and sustainable homeownership.
- Engage in financial wellness work with a Homebuyer Advisor to improve your credit score now, so you can get the best rate on your mortgage when you’re ready to apply.
Sign Up to Receive Updates
As this program comes together, we will be sending periodic updates with more information and specific launch timing details. Subscribe below to stay in the know.