NeighborWorks Home Partners is helping administer a $100 million down payment assistance program for first-generation homebuyers.

The guidelines below are subject to change at any time without notice. Loan funds are subject to availability. Call 651-292-8710 or email hello@nwhomepartners.org for complete details.

Program Overview

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.

Am I eligible?

  • For this program, you must be 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.
  • 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-signers are not allowed.
  • You need to be preapproved for a fixed-rate mortgage from the lender of your choice. We recommend taking this step after completing a homebuyer education workshop.

Income Eligibility

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.

Required Education

  • Within the last 12 months, the first-generation buyer on the loan must have completed an approved homebuyer education workshop including Home Stretch, Realizing the American Dream, and Pathways Home (a Native homeownership course).
  • Framework, which is a self-guided online course, is also acceptable. This workshop must be completed BEFORE submitting a purchase agreement.

Loan Terms

  • 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.

Eligible Properties

  • You can purchase a 1–2 unit home located in anywhere Minnesota. Shared equity, community land trusts, and other resale restricted purchases are permitted.

Use of Funds

  • Down payment, closing costs, discount points, buyer pre-paid closing items that could include home owner’s insurance, appraisal fee.
  • Can not be used for 3.5% FHA required contribution.
  • No cash back to the borrower outside of pre-paid closing costs listed on the closing disclosure.

Lenders

  • Fixed-rate mortgage from the lender of your choice.
  • Sharia compliant and Individual Taxpayer Identification Number (ITIN) mortgages are accepted.

How do I apply?

  • Once the application opens, you will be able to apply directly to Midwest Minnesota Community Development Corporation (MMCDC) by firstgendpa.org. MMCDC will complete the initial screening and if eligible, then assign your file to a partner originator to complete the application process.
  • You need to be preapproved for a fixed-rate mortgage from the lender of your choice.
  • 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.

The current loan terms and conditions stated, including interest rates, do not constitute a commitment to lend or an offer to enter into an agreement, and that such an offer may only be made pursuant to Minnesota Statutes, Section 47.206(3) and (4).

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NeighborWorks Home Partners

NeighborWorks Home Partners’ mission is empowering individuals and communities by helping people buy, fix and keep their homes. Learn more.

651-292-8710 | Staff Directory
Main Office:
533 Dale Street N.
Saint Paul, MN 55103

Minneapolis Office:
1930 Glenwood Avenue
Minneapolis, MN 55405
hello@nwhomepartners.org

EIN 41-1386089

An Affirmative Action, Equal Opportunity Employer

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