First Time Homebuyer program

First Time Homebuyer program is a deferred second loan for homebuyers in Plymouth, Minnesota. The City of Plymouth First Time Homebuyer Program provides a 0% interest deferred second mortgage of up to $35,000 to income-qualified first-time buyers purchasing within Plymouth city limits. Funded through the City of Plymouth HRA's affordable housing trust and CDBG funds. The loan can be allocated across down payment (max $5,000), closing costs (max $7,500), and mortgage principal reduction (max $30,000). Repayment is deferred until sale, transfer, refinance with cash-out, or loss of owner-occupancy. Zero-interest deferred loan up to $35,000 broken into three components: (1) up to 50% of required down payment (max $5,000). (2) up to 100% of eligible closing costs (max $7,500). and (3) up to 15% of purchase price toward mortgage principal reduction (max $30,000). Loan is fully deferred and repayable at sale, transfer, refinance with cash-out, or loss of owner-occupancy. Funding comes from CDBG, HRA, and Local Government.

First Time Homebuyer program provides assistance worth 15% of the purchase price, as set by the program. Homebuyer contribution: Buyer typically contributes 50% of required down payment from own funds. 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.

First Time Homebuyer program is deferred, so no payments are due until the home is sold, refinanced, or the first mortgage is paid off. Repayment is triggered by Due in full at sale, transfer of title, refinance with cash-out, or loss of owner-occupancy. 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.

First Time Homebuyer 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 buyer required (no ownership in past 3 years); standard HUD exceptions apply. On credit, the program states: Per first-mortgage lender. A homebuyer education course is required, through Minnesota Homeownership Center / Framework / HUD-approved counseling agency. Residency requirement: Property must be located in City of Plymouth and used as borrower's principal residence. Citizenship or immigration status: U.S. citizen or qualified non-citizen per first-mortgage and federal rules. First-time buyer (no homeownership in past 3 years). Property must be located within Plymouth city limits and used as principal residence. Income at or below 80% HUD AMI for the Minneapolis-St. Paul-Bloomington MSA: 1-person ~$72,950 to 8-person ~$137,550 (FY2025 limits). Buyer must complete Minnesota Homeownership Center or equivalent homebuyer education.

First Time Homebuyer program limits household income to 80% of the area median income, which varies by county and household size. Household income at or below 80% HUD AMI for Minneapolis-St. Paul-Bloomington MN-WI HMFA: 1-person $72,950 to 8-person $137,550 (FY2025 limits, current as of April 2026). 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.

First Time Homebuyer program caps the purchase price as follows: No fixed program cap; subject to Minnesota Housing acquisition limits when paired and first-mortgage underwriting. Eligible property types include Single-family detached, Townhome, and Condominium. New construction is eligible. Manufactured homes are not eligible.

First Time Homebuyer program serves homebuyers purchasing in Plymouth, Minnesota.

Applications for First Time Homebuyer program go through the administering agency, which publishes the current terms and the application steps on its own site. Funds are reserved through First-come, first-served via Plymouth Housing Division once buyer has signed purchase agreement. 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.