Single Family | New Construction Gap Financing Program Guidelines
Program Goals
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Promote homeownership opportunities for low- and moderate-income families in Greater Minnesota
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Encourage the production of affordable starter homes in communities with an identified housing need
Eligible Applicants
Non-profit and for-profit developers, local government agencies, employers, lenders and local or regional non-profits. Approved applicants will administer funds to individual homebuyers.
Basic Program Requirements
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Need-based gap funds (up to $15,000 per homebuyer) are provided through an approved local sponsor who applies for and administers the funds. (See above for eligible applicants.) Local program sponsors are often involved in the development of the new housing and able to facilitate homebuyer education and determine homebuyer gap financing needs.
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Funds are available to families purchasing newly constructed homes in Greater Minnesota (outside of the 7-county Twin Cities Metro Area).
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The acquisition cost limit of a new home may not exceed current GMHF limits. Slightly higher limits are allowed for larger families; contact GMHF for more information.
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Homes must be connected to city sewer and water.
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Homebuyers must have incomes at or below 80 percent of statewide median income, adjusted for family size.
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First mortgages utilized by the homebuyers must meet GMHF's approved mortgage criteria.
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Homebuyers must complete an approved homebuyer education curriculum.
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GMHF gap financing can only be used in combination with GMHF downpayment assistance when the downpayment match is from an employer.
Funding Cycles
Funds are available twice a year in the Spring and Fall through Minnesota Housing Finance Agency's Super Requests For Proposals (RFP) process.
