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Fridley Down Payment Assistance Deferred Loan

City of Fridley HRA (administered by Center for Energy and Environment / CEE) · Fridley, Minnesota

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Assistance

$1,000–$10,000

The maximum the program publishes — not an offer

Income limit

110% AMI

Of area median income; varies by county and household size

Repayment

Forgivable

Forgiven after 30 years

What is Fridley Down Payment Assistance Deferred Loan?

Fridley Down Payment Assistance Deferred Loan is a deferred second loan for homebuyers in Fridley, Minnesota, administered by City of Fridley HRA (administered by Center for Energy and Environment / CEE).

  • The City of Fridley HRA offers a deferred, 0% interest down payment and closing-cost assistance loan to first-time homebuyers purchasing a 1–4 unit property within Fridley (Anoka County), administered by the Center for Energy and Environment (CEE). Amounts are tiered by income: up to $10,000 for households at/below 80% AMI and up to $5,000 for households above 80% and below 110% AMI. The loan has no monthly payments and is 100% forgiven after 30 years of continuous owner-occupancy; the full balance is due if the home is sold, transferred, or vacated before then. Secured by a second mortgage.
  • 0% interest.
  • No monthly payments.
  • Up to $10,000 (≤80% AMI) / $5,000 (80–110% AMI).
  • 30-year term with full forgiveness if continuously owner-occupied.
  • No down payment required from borrower.
  • 1–4 unit properties eligible.
  • Apply online via CEE.
  • Funding comes from City of Fridley HRA funds.

How much assistance does it provide?

Fridley Down Payment Assistance Deferred Loan offers between $1,000 and $10,000 in assistance.

  • Award tiers: Tier 1: up to $10,000 for households at/below 80% AMI and Tier 2: up to $5,000 for households >80% and <110% AMI. 30-year deferred; 100% forgiven if owner-occupied at 30 years.
  • Buyer contribution: No down payment required from the borrower.
  • The program can be combined with Other Fridley HRA loan programs (subject to $75,000 total cap); Minnesota Housing Start-Up and other first-mortgage programs. Only one Fridley deferred loan outstanding at a time.
  • Amounts are the program's published maximums, not an offer — City of Fridley HRA (administered by Center for Energy and Environment / CEE) determines any individual award.

Do you have to pay it back?

Fridley Down Payment Assistance Deferred Loan is forgiven after 30 years, so a buyer who stays that long does not repay it.

  • Repayment is triggered by Sale, transfer of title, property no longer owner-occupied, or refinancing before the 30-year maturity; 100% due and payable. 100% forgiven if still owner-occupied at 30 years.
  • The assistance is recorded in Second (secured by mortgage on property) position.
  • Forgiveness and repayment terms are set by the program and can change — confirm them on the official program page before applying.

Who qualifies?

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

The program requires

  • First-time homebuyer — with exceptions: First-time defined as not having owned a home within the last three years.
  • The home is occupied as a primary residence
  • A completed homebuyer education course, through HomeStretch workshop (Minnesota Homeownership Center) or another valid course from a HUD-approved counseling agency; proof required before closing.
  • Residency: Property must be within the City of Fridley, MN.
  • Citizenship or immigration status: All borrowers must be legal residents of the United States; non-occupant co-borrowers ineligible.
  • DRAFT (dpa-gap-finder 2026-06-11): pending review. Apply to CEE at least four weeks before closing with a signed purchase agreement. Funding subject to availability — confirm funds with CEE first. Guidelines (Exhibit A-24) are 2024; income limits are 2026 HUD figures. LTV limit 110%. NOTE: separate City of Anoka DPA (same CEE/HRA structure) is currently INACTIVE; Anoka County does not run its own DPA.

The program excludes

  • Manufactured homes
  • Households above 110% of area median income

These are the program's own published rules, not a decision about any individual — the administering agency and a lender determine who actually qualifies.

What are the income limits?

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

  • 110% AMI by household size (adjusted gross income). Tier 1 (≤80% AMI): up to $10,000; Tier 2 (>80% to <110% AMI): up to $5,000. 2026 HUD (Minneapolis-St. Paul MSA) 80% 4-person $105,200; 110% 4-person $144,650. Full 1–8 person tables in income-limit PDF.
  • The limit applies to total household income, not only the borrower&rsquo;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?

Fridley Down Payment Assistance Deferred Loan caps the purchase price as follows: Not specified; loan-to-value limit is 110%.

  • Eligible property types include Single-family, Townhome, Twin-home, Duplex, Condominium, 2-unit, 3-unit, and 4-unit.
  • Manufactured homes are not eligible.

Where does it apply?

Fridley Down Payment Assistance Deferred Loan serves buyers purchasing in Fridley, Minnesota.

How do you apply?

Applications for Fridley Down Payment Assistance Deferred Loan go through City of Fridley HRA (administered by Center for Energy and Environment / CEE), which publishes the current terms and the application steps on its own site.

  1. Take a homebuyer education course

    Required by the program, through HomeStretch workshop (Minnesota Homeownership Center) or another valid course from a HUD-approved counseling agency; proof required before closing..

  2. Contact City of Fridley HRA (administered by Center for Energy and Environment / CEE) to reserve funds

    Funds are reserved through Rolling; signed purchase agreement required; application at least four weeks before closing., and are subject to availability.

  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.

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