Down Payment Assistance Loan

What is Down Payment Assistance Loan?

Down Payment Assistance Loan is a forgivable loan for homebuyers in Coon Rapids, Minnesota.

• The City of Coon Rapids Down Payment Assistance Loan offers up to $35,000 as a 0% interest deferred loan with built-in forgiveness: half forgiven at year 10 and the remaining half at year 20 of continuous owner-occupancy. Funded with City of Coon Rapids housing revolving funds and administered by the Center for Energy and Environment (CEE) under contract. Loan is repayable in full only if the borrower exits before the forgiveness milestones (sale, transfer, or loss of owner-occupancy).
• Zero-interest deferred loan up to $35,000 for down payment and closing costs. Half ($17,500) of the loan is forgiven after 10 years and the remaining half after 20 years if the borrower lives in the home through each forgiveness milestone and meets all program terms. Loan is deferred until the property is sold, transferred, or no longer owner-occupied.
• Funding comes from Local Government and HRA.

How much assistance does it provide?

Down Payment Assistance Loan offers up to $35,000 in assistance.

• The program can be combined with other assistance, subject to the rules of each.
• Amounts are the program's published maximums, not an offer — the administering agency determines any individual award.

Do you have to pay it back?

Down Payment Assistance Loan is forgiven after 20 years, so a buyer who stays that long does not repay it.

• Repayment is triggered by Due in full if property is sold, transferred, or no longer owner-occupied before applicable forgiveness milestone (10 or 20 years).
• The assistance is recorded in 2 position.
• Forgiveness and repayment terms are set by the program and can change — confirm them on the official program page before applying.

Who qualifies?

Down Payment Assistance Loan is open to first-time homebuyers and buyers who will live in the home as their primary residence.

What are the income limits?

Down Payment Assistance Loan limits household income to 110% of the area median income, which varies by county and household size.

• Household income at or below 110% HUD AMI for Minneapolis-St. Paul-Bloomington MSA, varies by household size.
• 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?

Down Payment Assistance Loan caps the purchase price as follows: No fixed program cap; subject to first-mortgage product limits.

• Eligible property types include Single-family detached, Townhome, and Condominium.
• New construction is eligible.
• Manufactured homes are not eligible.

Where does it apply?

Down Payment Assistance Loan serves buyers purchasing in Coon Rapids, Minnesota.

How do you apply?

Applications for Down Payment Assistance Loan go through the administering agency, 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 Minnesota Homeownership Center / Framework / HUD-approved counseling agency..

2. 2

   Contact the administering agency to reserve funds

   Funds are reserved through First-come, first-served via CEE intake., 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.