First-Time Homebuyer Program

What is First-Time Homebuyer Program?

First-Time Homebuyer Program is a deferred second loan for homebuyers in Eden Prairie, Minnesota.

• The City of Eden Prairie First-Time Homebuyer Program offers a 0% interest deferred second mortgage of up to $25,000 (with a $35,000 cap across all city homebuyer assistance) to income-qualified first-time buyers purchasing within Eden Prairie city limits. Funded through the City's Housing and Community Services division using CDBG and pooled HRA/affordable housing trust funds, the program covers up to 50% of required down payment, up to 100% of closing costs (max $5,000), and up to 10% of purchase price toward mortgage principal reduction (max $10,000). The loan is fully deferred and repayable on sale, transfer, refinance with cash-out, or loss of owner-occupancy.
• Zero-interest deferred second mortgage of up to $25,000 (combined limit $35,000 with all forms of HCS assistance), structured to cover up to 50% of the required down payment, up to 100% of eligible closing costs (max $5,000), and up to 10% of purchase price (max $10,000) for mortgage principal reduction. Loan is fully deferred and repayable at sale, transfer, refinance with cash-out, or loss of owner-occupancy.
• Funding comes from CDBG, Local Government, and HRA.

How much assistance does it provide?

First-Time Homebuyer Program offers up to $35,000 in assistance.

• 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 when property is no longer the borrower's principal residence.
• 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 the Minneapolis-St. Paul-Bloomington MN-WI HMFA: 1-person $68,500 to 8-person $129,100 (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 first-mortgage product limits and Minnesota Housing maximum acquisition price when paired.

• 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 Eden Prairie, 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 HUD-approved or Minnesota Homeownership Center network agency (Home Stretch / Framework) required prior to closing..

2. 2

   Contact the administering agency to reserve funds

   Funds are reserved through First-come, first-served via Eden Prairie HCS staff 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.