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Downpayment and Closing Cost Assistance Loans

Downpayment and closing cost assistance loans are available for up to $12,000. View a comparison of each loan option.

For a limited time, conventional loan borrowers with incomes at or below 80% AMI by county can receive third party grants for cash to close. These grants can be layered with Minnesota Housing’s Monthly Payment Loan or Deferred Payment Loans.  For grant requirements, see Lender Guide below:

Monthly Payment Loan

The Monthly Payment Loan has a 10-year loan term with monthly payments and an interest rate equal to the first mortgage rate. It must be used with Start Up or Step Up. Loans go up $12,000 in $100 increments.

Deferred Payment Loans

Deferred Payment Loans have loan terms equal to the first mortgage term with 0% interest, repaid when the property is sold, refinanced or the first mortgage becomes due. Deferred Payment Loans are only available with Start Up. There are two options:
  • Deferred Payment Loan - Loans go up to $8,000 in $100 increments.
  • Deferred Payment Loan Plus - Loans go up to $10,000 in $100 increments for borrowers who meet two of the four following criteria (see the Eligibility Worksheet for more information):
    • Household of four or more people
    • Front-end ratio of 28% or higher calculated without DPA
    • Disabled household member
    • Sole head of household with at least one Eligible Dependent (household must include only one adult that is not an Eligible Dependent). An Eligible Dependent is:
      • A household member who is under 18 years of age
      • A Disabled household member
      • A senior (age 62 or older)