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.

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%. Homebuyer 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.

Carver County CDA Down Payment & Closing Cost Assistance Program is forgiven after 20 years, so a homebuyer 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.

Carver County CDA Down Payment & Closing Cost Assistance Program is open to first-time homebuyers and homebuyers who will live in the home as their primary residence. "First-time" has exceptions here: 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). On credit, the program states: No minimum credit score stated; first mortgage must be a prime/A-rated fixed-rate loan. A homebuyer education course is required, 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). 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).

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.

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.

Carver County CDA Down Payment & Closing Cost Assistance Program names first-generation homebuyers 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.

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

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. 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. 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.