Minnetonka Pathways to Homeownership Program
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
- 0% APR.
- Fixed interest rate.
- Loan amount is based on the household's income and the purchase price of the property.
- Households with incomes at or below 50% AMI: 25% of the purchase price, not to exceed $75,000
- Households with incomes between 51% and 60% AMI: 20% of the purchase price, not to exceed $70,000
- Households with incomes between 61% to 80% AMI: 15% of the purchase price, not to exceed $63,000
- Households with incomes between 81% and 120% AMI: 10% of the purchase price, not to exceed $50,000
- Income limits are based on the 2023 HUD Area Median Income limits
- All borrowers must have at least a 620 credit score and attend a Home Stretch workshop or any other HUD approved program.
- Asset limits apply.
Property Eligibility
- The purchase price cannot exceed the 12 month rolling median home sale price in Minnetonka, as published in the Minneapolis Area Realtors Annual Housing Market Report ($465,000, April 2023)
- Single-family owner-occupied properties located within the geographical boundaries of the City of Minnetonka
- 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
- Total gross annual household income cannot exceed 120% of the are median income based on a family size of four for households 1-4. Income limits will be increased based on family size for families more than 4.
- This loan will be forgiven 5% annually and if the property has not been sold, transferred and has remained the primary residence of the borrower for 20 years the loan is 100% forgiven.
- Assets cannot exceed $25,000 following closing on the home, excluding retirement assets up to $200,000 or noncash assets
- 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 7 years and occupy the property as their primary residence.
- 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).
- All borrowers must be legal residents of the United States.
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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