Grow North Down Payment Assistance

What is Grow North Down Payment Assistance?

Grow North Down Payment Assistance is a deferred second loan for homebuyers in Minneapolis, Minnesota.

• Grow North Down Payment Assistance is a CPED-administered employer-linked down payment assistance program for employees of North Minneapolis businesses purchasing homes in the Near North or Camden communities. The 0% interest deferred second mortgage of up to $10,000 supports both the recruitment of employees by Northside employers and homeownership in the Northside neighborhoods. Repayable in full at the end of the first-mortgage life, refinance, transfer of title, or 30-year deferment whichever occurs first.
• Zero-interest deferred loan of up to $10,000 in down payment and/or closing-cost assistance for employees of recruited businesses physically operating in North Minneapolis (Near North or Camden communities) who purchase a home in those neighborhoods. No monthly payments. 100% repayable at end of life of first mortgage, when home is no longer primary residence, or at end of 30-year term.
• Funding comes from Local Government, CPED, and HRA.

Do you have to pay it back?

Grow North Down Payment Assistance 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 end of first-mortgage life, refinance with cash-out, transfer of title, loss of owner-occupancy, or end of 30-year term.
• 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?

Grow North Down Payment Assistance is open to buyers who will live in the home as their primary residence.

What are the income limits?

Grow North Down Payment Assistance limits household income to 115% of the area median income, which varies by county and household size.

• Household income at or below 115% HUD AMI for Minneapolis-St. Paul-Bloomington MSA: 1-person $72,950 to 8-person $137,550 (FY2025 limits).
• 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?

Grow North Down Payment Assistance caps the purchase price as follows: No fixed program cap; subject to first-mortgage product limits.

• Eligible property types include Single-family detached, Duplex, Townhome, and Condominium.
• New construction is eligible.
• Manufactured homes are not eligible.

Where does it apply?

Grow North Down Payment Assistance serves buyers purchasing in Minneapolis, Minnesota.

• The program targets specific areas: Near North and Camden communities of North Minneapolis (Hennepin County), MN; employer must operate in North Minneapolis.

How do you apply?

Applications for Grow North Down Payment Assistance 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 Application via Minneapolis CPED with employer verification and 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.