Downpayment Assistance Program

 

Program Goals

  • Help low- to moderate-income households achieve homeownership.

  • Encourage local involvement in affordable housing.

  • Assist communities and employers in stabilizing their workforce.
Related links:

BBN Interim Financing
Program Guidelines

BBN New Construction Gap
Financing Program Guidelines

BBN Downpayment
Assistance Program Guidelines

Eligible Applicants

Local government agencies, non-profit developers, for-profit developers, and local non-profits. For employer-matching downpayment assistance, please refer to GMHF's Employer Assisted Housing Program Guidelines.

Type of Assistance

GMHF will match local downpayment assistance funds, up to $2,500 per homebuyer. GMHF funds are in the form of a grant to the homebuyer.

Program Requirements

• Downpayment assistance funds are provided through an approved local sponsor who applies for and administers the funds. Local sponsors can be local government agencies, non-profit developers, for-profit developers or local non-profits.

• Application must be made for a downpayment assistance program, not for individual homebuyers.

• Local funding source must be in place to provide matching downpayment dollars. Local dollars must be in the form of a grant or zero-interest forgivable or deferred loan.

• Downpayment assistance funds are available to families purchasing new or existing homes in Greater Minnesota (outside of the 7-county Twin Cities metropolitan area).

• The total development cost of a new home or sale price of an existing home may not exceed current GMHF limits ($131,000 in 2003). Slightly higher limits are allowed for larger families; contact GMHF for more information.

• Homebuyers must have incomes below 80 percent of the statewide median income, adjusted for family size.

• Homebuyers must complete an approved homebuyer education course.

• First mortgages available to the homebuyers must meet GMHF's approved mortgage criteria.

• GMHF downpayment assistance may not be used in combination with GMHF gap funding, unless the match is from an employer. Please refer to GMHF's Employer Assisted Housing Program Guidelines.

Funding Cycles

Applications for downpayment assistance is accepted on an open pipeline basis throughout the year and are available through GMHF.