Hennepin County HRA Homebuyer Assistance Program

What is Hennepin County HRA Homebuyer Assistance Program?

Hennepin County HRA Homebuyer Assistance Program is a forgivable loan for homebuyers in Hennepin County, Minnesota.

• The Hennepin County HRA Homebuyer Assistance Program, administered by NeighborWorks Home Partners under contract with the Hennepin County Housing and Redevelopment Authority, provides up to $30,000 in 0% interest deferred or forgivable second-mortgage assistance to income-qualified first-time buyers purchasing in Hennepin County. Households at or below 60% AMI receive a forgivable structure (10- or 15-year) and higher tiers receive a fully deferred structure. Funded with HUD HOME and Hennepin County HRA funds.
• Up to $30,000 in down payment and closing-cost assistance as a 0% interest deferred second mortgage. For households at or below 60% AMI, loan is fully forgivable on the day after the 10-year anniversary of the note (or 15-year for higher-income tiers).
• for higher tiers, loan is deferred and repayable at sale, refinance, or loss of owner-occupancy. Note: county countywide allocation reported out of funds until summer 2026.
• Funding comes from HOME, Local Government, and HRA.

How much assistance does it provide?

Hennepin County HRA Homebuyer Assistance Program offers up to $30,000 in assistance.

• Buyer contribution: Minimum buyer contribution per Hennepin County HRA guidelines.
• 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?

Hennepin County HRA Homebuyer Assistance Program is forgiven after 10 years, so a buyer who stays that long does not repay it.

• Repayment is triggered by Forgivable tier: due if exit before forgiveness milestone. Deferred tier: due at sale, refinance with cash-out, transfer, 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?

Hennepin County HRA Homebuyer Assistance Program is open to first-time homebuyers and buyers who will live in the home as their primary residence.

What are the income limits?

Hennepin County HRA Homebuyer Assistance Program limits household income to 115% 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?

Hennepin County HRA Homebuyer Assistance Program caps the purchase price as follows: No fixed program cap; subject to Minnesota Housing acquisition limits when paired.

• Eligible property types include Single-family detached, Townhome, Condominium, and 2-4 unit owner-occupied.
• New construction is eligible.
• Manufactured homes are not eligible.

Where does it apply?

Hennepin County HRA Homebuyer Assistance Program serves buyers purchasing in Hennepin County, Minnesota.

How do you apply?

Applications for Hennepin County HRA Homebuyer Assistance 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 required prior to closing..

2. 2

   Contact the administering agency to reserve funds

   Funds are reserved through First-come, first-served via NWHP intake; subject to county fund availability., 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.