NeighborhoodLIFT
Financial Assistance for Homebuyers in Minnesota
Available Assistance
The NeighborhoodLIFT provides eligible applicants matching funds up to $7,500 of down payment assistance on qualified properties. Additionally, the program includes homebuyer education to help homebuyers find and finance a home and manage the financial responsibilities that come with it.
Eligibility Requirements
In order to be eligible for the NeighborhoodLIFT program, applicants must meet certain guidelines. While there is no first-time homebuyer requirement, all homebuyers’ annual household income must fall at or under 80 percent of the Minneapolis-Saint Paul area median income (AMI).
Property Guidelines
Any home being purchased under the NeighborhoodLIFT program must serve as the applicant’s primary residence and be located within the city limits of Minneapolis or Saint Paul. Eligible property types include detached homes, townhouses, condominiums, 1- to 4-unit properties, and Planned Unit Developments (PUDs).
Income Limits
All NeighborhoodLIFT applicants must have an annual household income at or below 80 percent of the AMI.
1 person household: $72,300
2 person household: $72,300
3 person household: $72,300
4 person household: $72,300
5 person household: $78,100
6 person household: $83,900
7 person household: $89,700
8 person household: $95,450
*Seller-funded down payment programs were eliminated in the Housing and Economic Recovery Act of 2008, but States and Local government agencies are still permitted to help borrowers finance their homes with second mortgages and grants. These agencies set different requirements that a borrower needs to meet in order to qualify for the grant programs, such as property location, and purchase price and income limits.
(Note: All figures were accurate at the time of publication and may no longer be current - visit the program website for updated information.)
Down payment assistance programs and/or grants were researched by the team at FHA.com. Please note that all programs listed on this website may involve a second mortgage with payments that are forgiven, deferred, or subsidized in some manner until resale of the mortgaged property.
FHA.com's compilation is not a complete list, but it can serve as a starting point in your search for the down payment assistance program or grant for your situation. It is up to the consumer to contact these entities and find out the specifics of each program.
Down Payment Grants in Minnesota
Down Payment and Closing Cost Loans
Minnesota Housing understands that high upfront costs of purchasing a home can be a tough hurdle for some families to overcome, which is why they offer down payment and closing cost assistance to those financing their home with a Minnesota Housing first mortgage.
NeighborhoodLIFT
The NeighborhoodLIFT program helps individuals in the Minneapolis or Saint Paul area achieve their dreams of homeownership.
Project Reinvest
By providing down payment assistance funds to eligible applicants, Project Reinvest helps to offset the heavy upfront costs associated with the mortgage process.
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