Homebuyer Down Payment Assistance
Homebuyer Down Payment Assistance provides closing costs and reduces the amount of your first mortgage. Eligible homebuyers have access to down payment and closing cost loan programs offered by the City of Minneapolis. Additional eligibility requirements may apply.
Area Median Income (AMI) limits are based on Minnesota Housing. Limits are updated annually.
Programs | Income Limits | Loan Amount | Repayment | Additional Eligibility Requirements |
|---|---|---|---|---|
| Grow North | Not to exceed 115% AMI | 115% AMI: $5,000 80% AMI: $10,000 | 0% interest Deferred 30-year term Due on sale | Employees of north Minneapolis employers, physically residing and operating in north Minneapolis, to buy a home in north Minneapolis |
| Home Ownership Works (HOW) | Not to exceed 80% AMI | $1,000 -$14,999 | 0% interest Deferred 30-year term Due on sale | Buy a single family home rehabilitated or constructed through HOW |
| Homeownership Opportunity Minneapolis (HOM) | Not to exceed 115% AMI | 115% AMI: $5,000 80% AMI: $10,000 | 0% interest Deferred 30-year term Due on sale | Successful completion of Financial Wellness counseling and MUST be referred by a City-approved counseling agency |
| Minneapolis Homes: REHAB Homebuyer Assistance | Not to exceed 115% AMI | $10,000 | 0% interest Deferred 30-year term Due on sale | Buy a home to rehabilitate or one that has been recently rehabilitated through Minneapolis Homes REHAB |
| Minneapolis Homes: Affordability Gap Homebuyer Assistance | Not to exceed 80% AMI | $1,000-$37,500 LTA: $1,000-$95,000 | 0% interest Deferred 30-year term Due on sale | Buy a home constructed through Minneapolis Homes Development Assistance |
| Minneapolis Homes: BUILD Homebuyer Incentive | N/A | Up to $20,000* | 0% interest Forgiven over a five-year owner occupancy period (1/60 per month) | Additional $5,000 is available to active, uniformed, sworn City of Minneapolis police officers, firefighters, EMTs and full-time Minneapolis Public School pre-K – 12 teachers |
| Neighborhood Stabilization Program (NSP) | Not to exceed 120% AMI | Up to $7,500 | 0% interest Forgiven after five-year owner occupancy period | Buy a home rehabilitated or constructed through NSP |
Minneapolis Homes Homebuyer Assistance Programs information (PDF)
Requirements:
- Used for down payment and normal closing costs
- Homebuyer education is required
- Borrowers may receive only one Minneapolis Homes Homebuyer Assistance program at a time
- Only City-approved Contract for deed models eligible
- Must be an owner-occupied dwelling
NOTE: Borrowers do not have to be first-time homebuyers
Minneapolis Homes Affordability Gap Homebuyer Assistance Guidelines (PDF)
Homeownership Opportunity Minneapolis (HOM) Guidelines (PDF)
Home Ownership Works (HOW) Guidelines (PDF)
Minneapolis Homes BUILD Homebuyer Incentive Guidelines (PDF)
Minneapolis Homes REHAB Homebuyer Assistance Guidelines (PDF)
For more information contact Aarica Coleman, (612) 673-5078
Last updated Dec 4, 2018
