AEOA First Time Homebuyer Assistance Program

What is AEOA First Time Homebuyer Assistance Program?

AEOA First Time Homebuyer Assistance Program is a forgivable loan for homebuyers in St. Louis; Lake; Cook County, Minnesota, administered by Arrowhead Economic Opportunity Agency (AEOA).

• AEOA's First Time Homebuyer Assistance Program provides down payment and closing-cost assistance to income-qualified first-time buyers purchasing in St. Louis (excluding Duluth), Lake, and Cook counties. A 0%-interest deferred loan of up to $8,000 (minimum $1,000), no monthly payments, forgiven after 10 years of owner-occupancy. Buyers complete a Home Stretch workshop (or Framework) plus one-on-one counseling before signing a purchase agreement and contribute at least $1,000.
• Up to $8,000.
• 0% interest, no monthly payments.
• Forgiven after 10 years.
• Free one-on-one counseling.
• This is a federal program, so it is available beyond a single state or city.
• Funding comes from Northeast Minnesota HOME Consortium (St. Louis County) / HUD HOME.

How much assistance does it provide?

AEOA First Time Homebuyer Assistance Program offers between $1,000 and $8,000 in assistance.

• Buyer contribution: Minimum $1,000 from own resources (may include education cost, earnest money, inspection, appraisal).
• The program can be combined with other assistance, subject to the rules of each.
• Amounts are the program's published maximums, not an offer — Arrowhead Economic Opportunity Agency (AEOA) determines any individual award.

Do you have to pay it back?

AEOA First Time Homebuyer Assistance Program is forgiven after 10 years, so a buyer who stays that long does not repay it.

• Repayment is triggered by Sale, transfer, or loss of owner-occupancy before the 10-year forgiveness term; payoff does not decline during term.
• The assistance is recorded in Subordinate position.
• Forgiveness and repayment terms are set by the program and can change — confirm them on the official program page before applying.

Who qualifies?

AEOA First Time Homebuyer Assistance Program is open to first-time homebuyers and buyers who will live in the home as their primary residence.

What are the income limits?

AEOA First Time Homebuyer Assistance Program limits household income to 80% of the area median income, which varies by county and household size.

• At/below 80% HUD AMI, varies by county. St. Louis/Lake/Cook: 1p $40,550; 2p $46,350; 3p $52,150; 4p $57,900; 5p $62,550; 6p $67,200; 7p $71,800; 8p $76,450.
• The limit applies to total household income, not only the borrower’s.
• The program lists a maximum household size of 8.
• Area median income figures are published by HUD and updated annually, so check the current table for the county before relying on a number.

What kind of home can it be used for?

AEOA First Time Homebuyer Assistance Program caps the purchase price as follows: Maximum varies by county; home must be owner-occupied.

• Eligible property types include Single Family.

Where does it apply?

AEOA First Time Homebuyer Assistance Program is a federal program, so it is not limited to Minnesota.

How do you apply?

Applications for AEOA First Time Homebuyer Assistance Program go through Arrowhead Economic Opportunity Agency (AEOA), which publishes the current terms and the application steps on its own site.

1. 1

   Take a homebuyer education course

   Required by the program, through Home Stretch Workshop (AEOA) or Framework, plus one-on-one counseling before purchase agreement.

2. 2

   Contact Arrowhead Economic Opportunity Agency (AEOA) to reserve funds

   Funds are reserved through First-come, first-served; qualification in one-on-one counseling session, and are subject to availability.

3. 3

   Work with a lender who handles the program

   Hey Prescott is not a lender and does not accept applications; this page describes the program so a buyer can take it to a lender or housing counselor.