Burnsville Down Payment Assistance Deferred Loan

Burnsville Down Payment Assistance Deferred Loan is a deferred second loan for homebuyers in Burnsville, Minnesota, administered by Center for Energy and Environment (CEE), on behalf of the City of Burnsville / Burnsville Economic Development Authority. The City of Burnsville, through CEE, offers a down payment and closing cost assistance deferred loan to homebuyers purchasing in Burnsville. The loan is up to 10% of the purchase price at 0.25% APR, deferred for 30 years with no monthly payments. If the borrower still owns and occupies the home at 30 years, the loan is fully forgiven; otherwise 100% is due upon sale, transfer, or vacancy. Borrowers must contribute at least 1% of their own funds and meet 80% AMI income limits. 0.25% APR. Up to 10% of purchase price. 30-year deferred, no monthly payments. 100% forgiven at 30 years if owner-occupied. No prepayment penalty. Funding comes from Burnsville Local Affordable Housing Aid (LAHA, MN Statute 477A.35); set-up and origination funded by EDA levy funds.

Burnsville Down Payment Assistance Deferred Loan offers up to $41,000 in assistance. Homebuyer contribution: Borrower(s) must contribute at least 1% of the purchase price toward down payment or closing costs using their own funds (excludes seller contributions). Amounts are the program's published maximums, not an offer — Center for Energy and Environment (CEE), on behalf of the City of Burnsville / Burnsville Economic Development Authority determines any individual award.

Burnsville Down Payment Assistance Deferred Loan is forgiven after 30 years, so a homebuyer who stays that long does not repay it. Repayment is triggered by Loan is 100% due and payable upon sale, transfer of title, or when the property is no longer occupied by the borrower prior to 30 years; if still owned and occupied at 30 years the loan is 100% forgiven. The assistance is recorded in second mortgage position. Forgiveness and repayment terms are set by the program and can change — confirm them on the official program page before applying.

Burnsville Down Payment Assistance Deferred Loan is open to homebuyers who will live in the home as their primary residence. On credit, the program states: No minimum credit score stated. No outstanding judgments/collections; bankruptcy discharged 18+ months prior; foreclosure redemption 18+ months prior; generally no more than two 60-day late payments without explanation; no defaulted government loans. Residency requirement: Property must be located within the City of Burnsville; borrower(s) must be a legal resident. Citizenship or immigration status: Borrower(s) must be a legal resident; non-legal residents are ineligible. Signed purchase agreement required; apply 4+ weeks before closing. Funds subject to availability. Purchase price cap $410,000. Borrower must contribute 1% of own funds. Funded by Burnsville Local Affordable Housing Aid; verified ACTIVE on official CEE page as of June 2026. 4-person income figure derived from HUD MSA limits, not printed on program PDF; max loan ($41,000) computed as 10% of the $410,000 price cap.

Burnsville Down Payment Assistance Deferred Loan limits household income to 80% of the area median income, which varies by county and household size. Borrower(s) may not exceed 80% AMI for the Minneapolis-St. Paul-Bloomington MSA, by household size and adjusted gross income. Program PDF references HUD limits by household size rather than printing a table; 4-person 80% AMI figure ($105,200) derived from HUD/Met Council FY2026 limits, not printed on the program PDF. The limit applies to total household income, not only the borrower’s. Area median income figures are published by HUD and updated annually, so check the current table for the county before relying on a number.

Burnsville Down Payment Assistance Deferred Loan caps the purchase price at $410,000. Eligible property types include Single Family, Condo, Townhome, and 2-4 Unit.

Burnsville Down Payment Assistance Deferred Loan serves homebuyers purchasing in Burnsville, Minnesota. Targeted neighborhoods: City of Burnsville (citywide).

Applications for Burnsville Down Payment Assistance Deferred Loan go through Center for Energy and Environment (CEE), on behalf of the City of Burnsville / Burnsville Economic Development Authority, which publishes the current terms and the application steps on its own site. Funds are reserved through First-come, first-served as applicants qualify; signed and executed purchase agreement required; application must be submitted at least four weeks prior to closing. Hey Prescott is not a lender and does not accept applications; this page describes the program so a homebuyer can take it to a lender or housing counselor.