First Time Homebuyer
Down Payment and Closing Cost Assistance
Minnesota Housing Finance Agency (MHFA)For more
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Minnesota Housing provides the opportunity for eligible homebuyers whoqualify for a Minnesota Housing loan to receive an interest-free, deferred loan to help with down payment and closing costs through the Homeownership Assistance Fund (HAF).
First time homebuyers interested in using HAF should contact a Minnesota Housing participating lender prior to signing a purchase agreement. Participating lenders can determine the level of HAF eligibility to maximize your purchasing power.
Borrowers are eligible for HAF if they meet one of the following criteria:
- Borrowers eligible for the CASA program
- Single headed household
- Household of color or Hispanic ethnicity
- Household containing persons with a disability
- Borrower purchasing in a low-income census tract
- Household earning 60% (or less) or area median income
Two types of HAF assistance may be available:
- HAF Entry Cost Assistance provides up to $3,000 to help borrowers with down payment or closing costs
- HAF Monthly Payment Assistance provides up to $75 per month to help pay a portion of the monthly mortgage payment in the early years of the mortgage (available only with the Community Activity Set-Aside Program).