Central Down Payment Assistance Loan
The Central Neighborhood has made resources available to help residents purchase properties in the Central Neighborhood. Other sources of funds, such as MHFA and CEE loans, may be used to supplement this program.
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About the Loan
- 0% APR.
- No monthly payments.
- Loan amounts up to $10,000.
- 1-4 unit owner-occupied residential properties located in the Central Neighborhood.
- Individual condo and townhome owners and properties held in a trust are eligible.
- Loan approval is subject to credit and program guidelines.
- To ensure funding we need a signed and executed purchase agreement and the application must be submitted at least four weeks prior to closing.
- 0% APR.
- Maximum loan of $5,000 or up to $10,000 for vacant properties.
- Borrower must contribute at least $1,000 towards purchase price.
- Closing costs apply.
- 10 year term, after 10 years the loan is 100% forgiven if the property is still owned and occupied.
- Income limits apply.
- Must be considered a first time homebuyer (someone who hasn’t owned a home within the last 3 years).
- Vacant properties are eligible. Vacant property is defined as a property on Minneapolis' vacant/boarded structures, condemned or foreclosed and no longer occupied.
- Prior to closing the homebuyer(s) MUST attend a Home Stretch workshop or other valid homebuyers course offered through an approved counseling agency by the US Department of Housing and Urban Development (HUD).
- Borrowers may have a maximum of two NRP loans out from any combination of the programs at any one time.
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).