Minnetonka Down Payment Assistance Deferred Loan
The Economic Development Authority in and for the City of Minnetonka is making funds available for down payment and closing cost assistance.
NOTICE: To ensure funding we need a signed and executed purchase agreement and the application must be submitted at least FOUR WEEKS prior to closing.
The guidelines below are subject to change at any time without notice. Loan funds are subject to availability. Email or call for complete details.
Hablamos Español: 612-335-5856
About the Loan
- 1% APR.
- Fixed interest rate.
- Loan amounts up to $50,000.
- Asset limits apply.
Property Eligibility
- Estimated market value must be at or below $460,000.
- Single-family owner-occupied properties.
- Townhomes or condominiums 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.
Loan Details
- 1% APR.
- Fixed interest rate.
- Income limits apply.
- 25% of the down payment and closing costs must come from the borrower. Borrower funds cannot come from seller credits.
- Assets not to exceed $25,000 and retirement accounts, such as a 401K or IRA, shall not exceed $200,000
- The loan is 100% forgiven after 30 years. If the borrower sells, transfers title or the home is no longer the primary residence of the original borrower before 30 years, the entire balance is due and payable. The loan may also become due and payable upon refinance.
- Funds may be used for down payment or closing costs.
- Borrower(s) must be first time Homebuyer(s) as defined by someone who hasn’t owned a home within the last 3 years.
- 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).
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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