Lenders and Partners Frequently Asked Questions

Applications generally are sent out twice a year, once in early June and again mid December. Completed applications are due back to Minnesota Housing mid July and February. Refer to the Apply for Funding section of the website for more information.

Subsidy Recapture allows the federal government to recover tax subsidies from homebuyers who used subsidized mortgages to purchase their home, and have since rapidly experienced greatly improved economic circumstances upon sale of the home.
Subsidy Recapture only applies if ALL 3 conditions are met:

1. 1. The home is sold in the first 9 years of the loan; AND
   
2. 2. The Borrower realizes a gain on the sale of their property (as defined by the IRS); AND
   
3. 3. The Borrower's household income increases substantially.

If subsidy recapture tax applies, the Borrower will incorporate the tax into their Federal Tax Returns for the year in which they sell the home. For definitive answers, a tax professional should be consulted or the IRS contacted at 1.800.829.1040.