Mother holding toddler who is kissing her cheek

** Coming to Minnesota in Late Spring 2024 **

Forgivable First Generation Homebuyers
Community Down Payment Assistance Fund

Am I Eligible? How Does It Work? How Do I Apply?

Applications are not yet being accepted

When the program launches, we will post the application link here.

To be notified about program launch status details, sign up to receive updates.

Sign Up to Receive Updates

Am I Eligible?

For this program, you are a First-Generation Homebuyer if you AND your parent(s) or legal guardian(s) never owned a home in any country, OR owned a home but lost it due to foreclosure. You also must be a current resident of Minnesota.

Here are two scenarios where the buyer would NOT qualify as a First-Generation Homebuyer:

  • If you or any of your parents/legal guardians owned a home at any time, you are not a first-generation homebuyer, regardless of whether your parents/legal guardians are living or not.
  • If you or any of your parents/legal guardians married someone who owned a home, you are not a first-generation homebuyer. Marrying someone who owns a home means that you have ownership interest, even if you are not listed on the mortgage.

The only exceptions to the two scenarios above are if you or your parents/legal guardians previously owned a home that was lost due to foreclosure, and you/your parents/guardians have not owned a home since the foreclosure.

When you apply for the First-Generation Homebuyers Community Down Payment Assistance Fund, you will be required to a sign a First-Generation Homebuyer Affidavit, which is a legal document confirming you meet the qualifications laid out above. If someone knowingly misrepresents their eligibility, they are committing mortgage fraud.

At least one buyer must be a First-Generation Homebuyer and a resident of Minnesota. All other buyers (co-borrowers) must be first-time homebuyers, meaning they haven’t owned a home in the last three years. Non-occupant co-borrowers and co-signors are not allowed.

Yes. The total income of all buyers (everyone listed on the mortgage loan) must be at or below:

  • $124,200 for buyers currently living in the 11-county Twin Cities Metro (Anoka, Carver, Chisago, Dakota, Hennepin, Isanti, Ramsey, Scott, Sherburne, Washington and Wright);
  • $118,000 for buyers living in Dodge or Olmsted county;
  • $111,700 for buyers living in any other Minnesota county.

Yes. The first-generation buyer on the loan (we recommend everyone) must have completed an approved homebuyer education workshop within the last 12 months. This workshop must be completed BEFORE executing a Purchase Agreement.

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.

How Do I Apply?

Once the application opens, you will be able to apply by clicking the link at the top of this page.

There are several things you need to do before applying to the program:

  • The first-generation buyer (we recommend everyone on the loan) must have completed an approved homebuyer education workshop within the last 12 months. [Note that this workshop must be completed BEFORE executing a Purchase Agreement.] You will submit your Homebuyer Education Certificate of Completion as part of the initial application process.

  • You need to be preapproved for a fixed-rate mortgage from the lender of your choice. [Note that Sharia Compliant and Individual Taxpayer Identification Number (ITIN) mortgages are accepted.] We recommend taking this step after completing a homebuyer education workshop.

  • While not required, you also can enlist the services of a Homebuyer Advisor who can assess your mortgage readiness and create a personalized ‘road-map’ to securing a low mortgage interest rate. These services are free and available to anyone in Minnesota.

Learn more about Homebuyer Advisors.

Once the program opens, applications will be 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.

Sign Up to Receive Updates

As this program comes together, we are sending periodic updates with more information and specific launch timing details. Subscribe below to stay in the know.