General Requirements
- City financing is available for down payment and normal closing costs
- Homebuyer education is required for all programs
- HomeStretch™. (find providers through the Minnesota Homeownership Center website)
- Minneapolis Urban League Realizing American Dream Program
- Framework online education
- Borrowers cannot combine Minneapolis Homes programs on the same housing unit
- Only City-approved contract for deed models eligible
- Must be an owner-occupied dwelling
- There is an income limit of 80% of area median income to apply for any Minneapolis Homes assistance program, updated by the U.S. Department of HUD annually
2022-2023 income limits effective May 2, 2022
Area median income is calculated by the US Department of Housing and Urban Development for the seven-county metro region annually and adjusts by household size – meaning all of the people who live at an address. Rules can differ for calculating income by program, so it’s best to talk to a loan administrator to see if you qualify.
| Household size | 1 | 2 | 3 | 4 | 5 | 6 |
|---|---|---|---|---|---|---|
| 80% AMI | $62,600 | $71,550 | $80,500 | $89,400 | $96,600 | $103,750 |
| 60% AMI | $49,280 | $56,320 | $63,360 | $70,400 | $76,032 | $81,664 |
Source: U.S. Department of Housing and Urban Development
Programs
Building Equity Down Payment Assistance Program
This program is administered by the Family housing fund. It focuses on homebuyers up to 115% of area median income to purchase a 2–4-unit building (Duplex, Triplex, Fourplex, or Home with ADU not to exceed 4 total units) as an owner-occupant landlord. The property must be in the 7-county metro area (Hennepin, Ramsey, Anoka, Dakota, Scott, Carver, or Washington). The amount of assistance provided is a 0% interest, no payment, 5- year forgivable loan of up to $40,000 in aid. Visit here for more information
Visit the Family Housing Fund website to learn more
Homeownership Opportunity Minneapolis (HOM) down payment assistance
Homeownership Opportunity Minneapolis is a down payment assistance program that provides a 0% interest, no payment 30-year loan with $10,000 in assistance for homebuyers between 61- 80% AMI and $20,000 in assistance for homebuyers below 60% AMI to purchase any home in the City of Minneapolis.
Applicants must complete financial wellness counseling prior to executing a purchase agreement, financial wellness counseling agencies include:
- African Development Center
- Mni Sota Fund
- CLUES (Comunidades Latinas Unidas en Servicio)
- Community Action Partnership of Suburban Hennepin
- Hmong American Partnership (HAP)
- Lutheran Social Service of Minnesota
- Minneapolis Urban League
- Neighborhood Development Alliance (NeDA)
- PRG, Inc.
- Project for Pride in Living, Inc. (PPL)
- Twin Cities Habitat for Humanity
To apply for HOM, contact one of the program administrators:
Homebuyer Initiated Program
The City provides funding to support City of Lakes Community Land Trust’s Homebuyer Initiated Program, which provides up to $70,000 of assistance to buyers purchasing homes on the open market. Homes are enrolled in a shared equity program.
Learn more about Homebuyer Initiated Program
Minneapolis Homes: Financing Affordable Homes
The City finances affordable homes available for purchase through an annual application process. Contact the developer for more details about how to purchase available homes and assistance available for purchase.
View a list of homes currently under construction
Information for Lender and Realtor Partners
First mortgage lenders and realtors may contact Ryan Nestingen for questions or product approval needs. Average production through programs listed below is 100 annually.
- Homeownership Opportunity Minneapolis
- Minneapolis Homes: Financing Affordability Gap
- Perpetually Affordable Housing Land Trust Model
Learn more about Minneapolis Homes.