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 from $500 to $15,000.
Property Eligibility
- Estimated market value must be at or below $372,600.
- 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 or closing costs must come from homeowner.
- Assets not to exceed $25,000 (subject property and retirement funds are excluded).
- The loan is 100% due when the borrower(s) sell(s), transfers ownership, or no longer occupies the property as the borrower(s) primary residence.
- 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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