Are you thinking about buying your first home but not sure about your down payment? Do you have some money saved up but not sure it’s enough? There are several programs available to help you with your down payment.
MN Housing is one of the main programs in Minnesota. There are two different down payment assistance programs within MN Housing, the deferred DPA and the monthly payment program. The deferred down payment assistance allows for up to $16,500 (more if you qualify for the Plus program) and you don’t have to pay it back until you sell the home or pay off your first mortgage. There isn’t any interest that accrues on this assistance. The monthly payment program allows you to get up to $18,000 in assistance but you have to pay it back over the first 10 years of the mortgage. There is interest charged, it is the same rate as your first mortgage. Both can be great programs if you need assistance.
We also offer a few different programs at CCM that can help you. If you are using Home Ready or Home Possible programs and putting 3-5% down, you may qualify for our Smart Start Program. This gives you up to $4000 (2% of the purchase price, max of $4000) in a grant that you do not have to pay back. If your income is less than 50% of the area median income, you can qualify for $5250. Fannie Mae and Freddie Mac have a program that allows you to get a grant of $2500 towards your down payment and closing costs, we add an additional $2750 to the $2500 for a total of $5250! None of this has to be paid back. The borrower has to contribute at least 1% of the purchase price.
Different areas in Minnesota have their own down payment assistance programs. If you are buying in Bloomington, there is a program that allows you to get up to $10,500 and if you live in the home until at least January 2027, you do not have to pay it back.
Woodbury, Eden Prairie, Edina and Ramsey County have different programs. Scott County has a grant available. If you are looking to buy, let me know what area and I can help you find programs that may help you with your down payment!
For some buyers using some of these programs may help you get your offer accepted. They may mean the difference between having enough of your own funds or needing to ask the seller for closing cost assistance. If you are in multiple offers, using a program can help avoid needing help from the seller.
Leslie Vanderwerf, NMLS ID#335509, CrossCountry Mortgage LLC, An Equal Housing Lender, NMLS#3029 – Email – Website
