Minnesota Housing is making some changes to their down payment assistance program effective March 3, 2025. They want to strengthen their ability to reach their mission targeted borrowers, continue to build on the first generation program and avoid starting and stopping their programs. These updates will make their programs more sustainable and help the borrowers with the greatest needs.
The Deferred Payment Loan program is reducing the maximum loan from $16,500 to $14,000. The DPL+ program will stay at $18,000. Both programs require a front end ratio of 28% or higher. In order to use the DPL+, you must meet one of four criteria:
- First Generation homebuyer
- Household of four or more people
- Household member who is a person with a disability
- Sole head of household with at least one eligible dependent residing in the household
The DPL program allows you to use up to $14,000 towards down payment and closing costs. The income limits are also changing. The income is now limited to 80% of the AMI based on household size. In the 11 county Twin Cities Metro area, a 1-2 person household is now limited to $79,000. This is a big change. For 3 people, the income limit is $89,000.
The Monthly Payment program is being reduced from $18,000 to $14,000. If you are using the Step Up program (meaning you have owned a home in the last three years), the income limit in the 11 County Metro area is $130,400 for 1-2 people and $150,000 for 3+.
This is a great program for those buying in Minnesota that need help with down payment. You need to have at least $1000 into the transaction. For those looking at homes that are going into multiple offers, this gives a way to help with closing costs so you do not have to ask the seller for a seller contribution.
Not all lenders work with MN Housing. If you are looking at buying a home and need help with the down payment and closing costs, please reach out. We have access to MN Housing and other programs to help with your down payment.
Leslie Vanderwerf, NMLS ID#335509, CrossCountry Mortgage LLC, An Equal Housing Lender, NMLS#3029 – Email – Website
