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Carver County CDA Down Payment & Closing Cost Assistance Program

Carver County Community Development Agency (CDA) · Carver County, Minnesota

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See what you qualify forOfficial program site →
Assistance

$50,000

The maximum the program publishes — not an offer

Income limit

100% AMI

Of area median income; varies by county and household size

Price cap

$415,000

Highest purchase price the program allows

Repayment

Forgivable

Forgiven after 20 years

What is Carver County CDA Down Payment & Closing Cost Assistance Program?

Carver County CDA Down Payment & Closing Cost Assistance Program is a forgivable loan for homebuyers in Carver County, Minnesota, administered by Carver County Community Development Agency (CDA).

  • The Carver County CDA's Down Payment and Closing Cost Assistance Program, an initiative of the Carver County Local Housing Trust Fund, provides qualified first-time homebuyers up to 25% of the purchase price (max $50,000) as a 0%-interest soft second mortgage forgivable over 20 years (5%/yr) while the home remains an owner-occupied primary residence. A First-Generation set-aside offers a 10-year forgivable version (CLTV up to 103%). Income must be at or below 100% AMI ($132,400) and purchase price cannot exceed $415,000.
  • Up to 25% of purchase price (max $50,000).
  • 0% interest.
  • Forgivable over 20 years (5%/yr).
  • Soft second, allows any lien position.
  • Layerable with other DPA.
  • First-Generation set-aside (10-yr forgiveness, CLTV up to 103%).
  • Funding comes from Carver County Local Housing Trust Fund (LHTF), Minn. Stat. 462C.16 / Carver County Ordinance 104-2023.

How much assistance does it provide?

Carver County CDA Down Payment & Closing Cost Assistance Program offers up to $50,000 in assistance.

  • Award tiers: Standard DPA (20-year forgivable). First-Generation Homebuyer Set-Aside: 10-year forgivable (10%/yr), CLTV up to 103%.
  • Buyer contribution: Minimum $1,000 of borrower's own funds; earnest money can count.
  • The program can be combined with Other DPA; Minnesota Housing programs, HUD FHA programs, and other local opportunities encouraged.
  • Amounts are the program's published maximums, not an offer — Carver County Community Development Agency (CDA) determines any individual award.

Do you have to pay it back?

Carver County CDA Down Payment & Closing Cost Assistance Program is forgiven after 20 years, so a buyer who stays that long does not repay it.

  • Repayment is triggered by Balance due in full on sale, transfer, conveyance, or when no longer the primary residence; 5% of original principal forgiven annually over 20 years while the original homebuyer(s) own and reside in the home.
  • The assistance is recorded in Soft second mortgage; allows any lien position. position.
  • Forgiveness and repayment terms are set by the program and can change — confirm them on the official program page before applying.

Who qualifies?

Carver County CDA Down Payment & Closing Cost Assistance Program is open to first-time homebuyers and buyers who will live in the home as their primary residence.

The program requires

  • First-time homebuyer — with exceptions: First-time homebuyer = no home owned within the last 3 years. First-Generation set-aside requires applicant and parents/guardians never owned a home (foreclosure-loss exception).
  • The home is occupied as a primary residence
  • On credit: No minimum credit score stated; first mortgage must be a prime/A-rated fixed-rate loan.
  • A completed homebuyer education course, through Home Stretch homebuyer education (virtual or in person) via HOCMN (hocmn.org), within the last 12 months and before submitting a purchase agreement.
  • Citizenship or immigration status: At least one applicant must be a Minnesota resident (no explicit citizenship requirement stated).
  • NOTE: pre-applications were temporarily CLOSED as of the June 2026 snapshot due to demand (program funded/active but not accepting new pre-applications - verify status before publishing). Reservation Letter required before signing a purchase agreement. Home Stretch education before purchase agreement. Liquid assets <= $50,000 after closing. Applicant cannot own other real estate. $100 application fee; loan serviced by Center for Energy and the Environment (CEE). Unconfirmed: min_credit_score, required_mortgage_term, annual_funding_cap, new-construction eligibility.

The program excludes

  • Manufactured homes
  • Purchases above the $415,000 price cap
  • Households above 100% of area median income

These are the program's own published rules, not a decision about any individual — the administering agency and a lender determine who actually qualifies.

What are the income limits?

Carver County CDA Down Payment & Closing Cost Assistance Program limits household income to 100% of the area median income, which varies by county and household size.

  • Gross household income at or below 100% of Carver County AMI, currently $132,400 (2025); not adjusted for household size.
  • The limit applies to total household income, not only the borrower&rsquo;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.

What kind of home can it be used for?

Carver County CDA Down Payment & Closing Cost Assistance Program caps the purchase price at $415,000.

  • Eligible property types include Single Family, 2-4 Unit, Condo, and Townhouse.
  • Manufactured homes are not eligible.

Is there eligibility for specific groups?

Carver County CDA Down Payment & Closing Cost Assistance Program names first-generation buyers among the groups it serves.

  • Being named here means the program mentions the group, not that membership alone qualifies an applicant — the rest of the eligibility rules still apply.

Where does it apply?

Carver County CDA Down Payment & Closing Cost Assistance Program serves buyers purchasing in Carver County, Minnesota.

How do you apply?

Applications for Carver County CDA Down Payment & Closing Cost Assistance Program go through Carver County Community Development Agency (CDA), which publishes the current terms and the application steps on its own site.

  1. Take a homebuyer education course

    Required by the program, through Home Stretch homebuyer education (virtual or in person) via HOCMN (hocmn.org), within the last 12 months and before submitting a purchase agreement..

  2. Contact Carver County Community Development Agency (CDA) to reserve funds

    Funds are reserved through First-come, first-served by date/time of complete application; DPA reserved for 150 days via a Reservation Letter; online pre-screening then full application., and are subject to availability.

  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.

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