First Time Homebuyer program

What is 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.

How much assistance does it provide?

First Time Homebuyer program provides assistance worth 15% of the purchase price, as set by the program.

• Buyer 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.

Do you have to pay it back?

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.

Who qualifies?

First Time Homebuyer program is open to first-time homebuyers and buyers who will live in the home as their primary residence.

What are the income limits?

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.

What kind of home can it be used for?

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.

Where does it apply?

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

How do you apply?

Applications for First Time Homebuyer program 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 Plymouth Housing Division once buyer has signed purchase agreement., 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.