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.

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

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 (displaced homemaker, single parent). On credit, the program states: Per first-mortgage lender underwriting; typically 620-660. A homebuyer education course is required, through HUD-approved or Minnesota Homeownership Center network agency (Home Stretch / Framework) required prior to closing. Residency requirement: Property must be located within City of Eden Prairie limits and used as borrower's principal residence. Citizenship or immigration status: U.S. citizen or qualified non-citizen per first-mortgage and federal HUD rules. First-time buyer (no homeownership in past 3 years). Property must be located within Eden Prairie city limits and used as principal residence. Buyer must complete Minnesota Homeownership Center / Framework or equivalent homebuyer education. Income at or below 80% HUD AMI for Minneapolis-St. Paul-Bloomington MSA: 1-person ~$68,500 to 8-person ~$129,100 (FY2025). Combined HCS assistance cap of $35,000 across all program components.

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.

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.

First-Time Homebuyer Program serves homebuyers purchasing in Eden Prairie, 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 Eden Prairie HCS staff 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.