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Minnetonka Pathways to Homeownership Program

Minnetonka Economic Development Authority (EDA); administered by Center for Energy and Environment (CEE) · Minnetonka, Minnesota

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Assistance

$75,000

The maximum the program publishes — not an offer

Income limit

120% AMI

Of area median income; varies by county and household size

Price cap

$500,000

Highest purchase price the program allows

Repayment

Forgivable

Forgiven after 20 years

What is Minnetonka Pathways to Homeownership Program?

Minnetonka Pathways to Homeownership Program is a forgivable loan for homebuyers in Minnetonka, Minnesota, administered by Minnetonka Economic Development Authority (EDA); administered by Center for Energy and Environment (CEE).

  • A 0% fixed-rate deferred, forgivable second-mortgage loan from the City of Minnetonka and its EDA (administered by CEE) providing down payment and closing cost assistance to first-time homebuyers (no homeownership in the past 7 years) purchasing a primary residence in Minnetonka. Assistance is tiered by household AMI band (10%-25% of purchase price, up to $50,000-$75,000). Forgives 5% per year and is 100% forgiven after 20 years of continuous owner-occupancy.
  • 0% APR fixed.
  • Deferred, forgiven 5%/yr and 100% after 20 years.
  • Up to $75,000.
  • Setup/origination fees paid by the program.
  • Funding comes from City of Minnetonka and its Economic Development Authority.

How much assistance does it provide?

Minnetonka Pathways to Homeownership Program offers up to $75,000 in assistance.

  • Award tiers: Tiered by AMI band: 25% of purchase price (<=50% AMI, up to $75,000); 20% (51-60% AMI, up to $70,000); 15% (61-80% AMI, up to $63,000); 10% (81-120% AMI, up to $50,000).
  • Buyer contribution: No minimum borrower contribution stated in primary sources.
  • Amounts are the program's published maximums, not an offer — Minnetonka Economic Development Authority (EDA); administered by Center for Energy and Environment (CEE) determines any individual award.

Do you have to pay it back?

Minnetonka Pathways to Homeownership Program is forgiven after 20 years, so a buyer who stays that long does not repay it.

  • Repayment is triggered by Sale, transfer, or ceasing to occupy/own as primary residence during the 20-year term; remaining unforgiven balance due. Forgives 5% annually; 100% forgiven after 20 years.
  • The assistance is recorded in Second mortgage (subordinate; mortgage in favor of the Minnetonka EDA) position.
  • Forgiveness and repayment terms are set by the program and can change — confirm them on the official program page before applying.

Who qualifies?

Minnetonka Pathways to Homeownership Program 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: Defined as not having owned a home within the past seven (7) years.
  • The home is occupied as a primary residence
  • On credit: All borrowers must have at least a 620 credit score; no outstanding liens or judgments.
  • A completed homebuyer education course, through Home Stretch (MN Homeownership Center), Framework, Minneapolis Urban League American Dream Program, or other HUD/City-approved program; evidence prior to closing.
  • Residency: All borrowers must be legal residents of the U.S.
  • Citizenship or immigration status: Borrowers must be legal residents of the U.S.; foreign nationals and illegal residents ineligible.
  • DRAFT (dpa-gap-finder 2026-06-12): pending review. Signed purchase agreement and application at least four weeks before closing; property homesteaded within 60 days; first mortgage fixed-rate; Declaration of Assets form; no outstanding liens or judgments. Income of all deed holders and resident spouse included. Larger assistance for lower AMI bands.

The program excludes

  • Manufactured homes
  • Purchases above the $500,000 price cap
  • Households above 120% 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?

Minnetonka Pathways to Homeownership Program limits household income to 120% of the area median income, which varies by county and household size.

  • Total gross annual household income cannot exceed 120% of AMI (family size of four for 1-4 person households; increases for larger families). HUD limits, adjusted annually.
  • The limit applies to total household income, not only the borrower&rsquo;s.
  • 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?

Minnetonka Pathways to Homeownership Program caps the purchase price at $500,000.

  • Eligible property types include Single Family, Townhouse, and Condo.
  • Manufactured homes are not eligible.

Where does it apply?

Minnetonka Pathways to Homeownership Program serves buyers purchasing in Minnetonka, Minnesota.

How do you apply?

Applications for Minnetonka Pathways to Homeownership Program go through Minnetonka Economic Development Authority (EDA); 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 Home Stretch (MN Homeownership Center), Framework, Minneapolis Urban League American Dream Program, or other HUD/City-approved program; evidence prior to closing..

  2. Contact Minnetonka Economic Development Authority (EDA); administered by Center for Energy and Environment (CEE) to reserve funds

    Funds are reserved through First-come, first-served; application with signed purchase agreement 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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