hey prescott.
See what you qualify for

Purchase Assistance Loan

Duluth, Minnesota

Last verified
See what you qualify forOfficial program site →
Income limit

80% AMI

Of area median income; varies by county and household size

Repayment

Deferred

No payments until the home is sold or refinanced

What is Purchase Assistance Loan?

Purchase Assistance Loan is a deferred second loan for homebuyers in Duluth, Minnesota.

  • 1 Roof's general low-income DPA. Up to $15,000 0% deferred second. Duluth/Arrowhead region. 80% AMI cap ($53,350-$100,550). 640 FICO. FTHB required.
  • 1 Roof Community Housing's general Purchase Assistance Loan is a 0% interest deferred second-mortgage DPA of up to $15,000 available to low-to-moderate-income first-time homebuyers purchasing a primary residence in the Duluth / Arrowhead region of NE Minnesota. The assistance is funded through CDBG, HOME, MN Housing Impact Fund, and local foundation sources, and is structured as a deferred loan with no monthly payments. The full balance is due upon sale, refinance with cash-out, transfer of title, or non-owner-occupancy. Buyers must be at or below 80% AMI Duluth MSA, complete 1 Roof's homebuyer education + counseling, and contribute at least $1,000 of their own funds.
  • Funding comes from CDBG, HOME, State, and Local Government.

Do you have to pay it back?

Purchase Assistance 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 0% interest deferred second mortgage. Balance due on sale, refinance with cash-out, transfer of title, or non-owner-occupancy.
  • The assistance is recorded in 2nd Lien position.
  • Forgiveness and repayment terms are set by the program and can change — confirm them on the official program page before applying.

Who qualifies?

Purchase Assistance 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: FTHB requirement may be waived in MN Housing federally targeted areas.
  • The home is occupied as a primary residence
  • On credit: 640 minimum FICO per first-mortgage product overlay.
  • A completed homebuyer education course, through 1 Roof Community Housing - HUD-approved housing counseling agency. Pre-purchase 8-hour homebuyer education (Framework or in-person) plus one-on-one counseling required.
  • Residency: Property must be in 1 Roof service area (NE MN: St. Louis, Carlton, Itasca, Lake, Cook counties).
  • Citizenship or immigration status: U.S. citizen, permanent resident, or qualifying non-permanent resident alien per first-mortgage product overlays.
  • Must be a first-time homebuyer (no ownership of a primary residence in the prior 3 years). Income at or below 80% AMI Duluth MSA: $53,350 (1-person) up to $100,550 (8-person household). Property must be located within 1 Roof's service area (St. Louis, Carlton, Itasca, Lake, Cook counties primarily). Must complete 1 Roof homebuyer education and one-on-one counseling. $1,000 minimum borrower contribution from own funds. Property must be primary residence within 60 days of closing.

The program excludes

  • Households above 80% 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?

Purchase Assistance Loan limits household income to 80% of the area median income, which varies by county and household size.

  • 80% AMI Duluth MSA: $53,350 (1-person) up to $100,550 (8-person). Verify by household size at intake.
  • The limit applies to total household income, not only the borrower’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?

Purchase Assistance Loan caps the purchase price as follows: Per MN Housing Start Up purchase price limits ($379,650-$515,200 by county) when stacked with MN Housing first mortgage.

  • Eligible property types include Single-family detached, condominium (project-approved), townhouse, PUD, manufactured home (real-property-titled), 1-2 unit owner-occupied.
  • New construction is eligible.
  • Manufactured homes are eligible.

Where does it apply?

Purchase Assistance Loan serves buyers purchasing in Duluth, Minnesota.

How do you apply?

Applications for Purchase Assistance Loan go through the administering agency, which publishes the current terms and the application steps on its own site.

  1. Take a homebuyer education course

    Required by the program, through 1 Roof Community Housing - HUD-approved housing counseling agency. Pre-purchase 8-hour homebuyer education (Framework or in-person) plus one-on-one counseling required..

  2. Contact the administering agency to reserve funds

    Funds are reserved through Application via 1 Roof Community Housing intake. Pre-purchase counseling required., 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.

Learn this program

Short reads on how it works, in plain language. Free, no sign-up needed to read.

Free course from Hey Prescott

Purchase Assistance Loan, explained

A short, free course on Purchase Assistance Loan: what it is, who it is for, when it is repaid, where it applies and how to apply. Based on program data from July 2026. About ten minutes.

5 modules · About 10 minutes

Read the course

Other programs in Duluth, Minnesota

See every program in Duluth, Minnesota →

90-second match

Not sure which you qualify for?

Answer 9 questions and we'll match you to every program you can actually use — in about 90 seconds. No SSN, no credit pull.

Find my programs