MMCDC Rural Down-Payment Loan

What is MMCDC Rural Down-Payment Loan?

MMCDC Rural Down-Payment Loan is a deferred second loan for homebuyers in Minnesota, administered by Midwest Minnesota Community Development Corporation (MMCDC).

• MMCDC's Rural Down-payment Loan is a $5,000 second-mortgage loan for the purchase of an owner-occupied home in rural Minnesota. There are no monthly payments and no interest; the loan is repaid when the home is sold or at the maturity of the first mortgage. It must be used with a USDA first mortgage from MMCDC, and a homebuyer education certificate is required.
• $5,000 toward down payment/closing costs.
• 0% interest.
• No monthly payments.
• Repaid only at sale or first-mortgage maturity.
• Funding comes from MMCDC (CDFI) funds.

How much assistance does it provide?

MMCDC Rural Down-Payment Loan offers between $5,000 and $5,000 in assistance.

• The program can be combined with USDA first mortgage from MMCDC; potentially other MMCDC products.
• Amounts are the program's published maximums, not an offer — Midwest Minnesota Community Development Corporation (MMCDC) determines any individual award.

Do you have to pay it back?

MMCDC Rural Down-Payment Loan is deferred, so no payments are due until the home is sold, refinanced, or the first mortgage is paid off.

• Repayment is triggered by Repaid when the home is sold or at the end (maturity) of the first mortgage.
• The assistance is recorded in second position.
• Forgiveness and repayment terms are set by the program and can change — confirm them on the official program page before applying.

Who qualifies?

MMCDC Rural Down-Payment Loan is open to buyers who will live in the home as their primary residence.

What are the income limits?

MMCDC Rural Down-Payment Loan sets its income limit as follows: Not published on program page; follows MMCDC mortgage-lending focus on lower-income households (unconfirmed specifics).

• 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?

MMCDC Rural Down-Payment Loan can be used for Single Family.

Where does it apply?

MMCDC Rural Down-Payment Loan serves buyers purchasing anywhere in Minnesota.

How do you apply?

Applications for MMCDC Rural Down-Payment Loan go through Midwest Minnesota Community Development Corporation (MMCDC), 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 Homebuyer Education Certificate required (provider not specified on page).

2. 2

   Contact Midwest Minnesota Community Development Corporation (MMCDC) to reserve funds

   Funds are reserved through Available until funds are depleted (limited-time offer), 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.