Loan terms

• Income and asset limits apply
• Maximum of $50,000, 1 percent interest rate (APR)
• Home buyer must contribute at least 25% of the down payment and closing costs.
• Principal and interest are deferred (due upon sale, refinance, transfer of title)
• Loan is secured by a mortgage on the applicant’s property
• Closing costs apply

Income limits

Eligible properties

• Single-family, owner-occupied properties, including town homes and condominiums
• Property must have an estimated market value at or below $485,000 (October 2024)

Other eligibility requirements

• Home buyer must complete a Home Stretch Workshop
• Borrower must be a first-time home buyer (has not owned a home within the last three years)

How to apply

To learn more or apply, visit the Center for Energy and Environment's website or call 612-335-5884.

The current loan terms and conditions stated, including interest rates, do not constitute a commitment to lend or an offer to enter into an agreement, and that such an offer may only be made pursuant to Minnesota Statutes, Section 47.206(3) and (4).

There is limited funding available for the Pathways to Homeownership program. 

The Pathways to Homeownership program provides down-payment and closing cost assistance to borrowers who have not owned a home over the past seven years.

Loan terms

• Income and asset limits apply
• Maximum loan of $75,000
• Zero percent interest rate (0% APR) with no monthly payments
• The loan will be forgiven at 5 percent annually, 20-year term
• Home buyer must contribute at least $1,000 to down-payment or closing costs
• Principal and interest are deferred (due upon sale, refinance, transfer of title)
• Loan is secured by a mortgage on the applicant’s property
• Closing costs apply

Eligible properties

• Single-family, owner-occupied properties, including town homes and condominiums
• Property must have an estimated market value at or below $485,000 (October 2024)

Other eligibility requirements

• Home buyer must complete a homeownership and financial counseling and education: HomeStretch^TM, Framework® or the Minneapolis Urban League American Dream Program
• Must occupy this property as their primary residence.
• Borrower must be a first-time home buyer (has not owned a home within the last seven years)

How to apply

To learn more or apply, visit the Center for Energy and Environment's website or call 612-335-5884.

NeighborWorks Home Partners

NeighborWorks Home Partners offer staff to assist with:

• Home buyer readiness
• Pre-purchasing coaching and advice
• Home buyer workshops
• Mortgage readiness credit repair
• Down payment assistance
• Foreclosure prevention counseling

Home Buyer Workshops

Community Action Partnership of Hennepin County (CAPHC) offers a workshop for first-time home buyers to learn about the process. Subjects covered are:

• Mortgage
• Purchasing
• Closing
• Problems (plumbing, heating, electrical, etc.) and how to identify them

There is a fee and pre-registration is required. To learn more, find a schedule of classes or register at CAPHC’s website or call 952-933-9639 ext. 281.

Homes within Reach

Homes within Reach is a non-profit that purchases single-family homes, rehabs them and then sells them to qualified homebuyers at a reduced price.

• Average sale price is $150,000-$175,000.
• Must qualify for a mortgage and meet income qualifications.

Visit homeswithinreach.org or call 952-401-7071 to learn more and apply.

Habitat for Humanity

Habitat for Humanity is a non-profit that provides home ownership opportunities; home owners contribute to the cost of their home through sweat-equity hours and a no-interest mortgage.

Visit tchabitat.org or call 612-331-4090 to learn more and apply.

• Minnesota Home Ownership Center is a non-profit, provides information and resources aimed at helping Minnesotans begin and maintain home ownership.

• Minnesota Attorney General Home Buyer’s Handbook

• Call the "Don’t Borrow Trouble" helpline at 612-312-2020. This national anti-predatory lending campaign helps residents avoid predatory lenders. They offer free advice for purchasing a home, refinancing, consolidating debt, taking out a home equity loan or mortgage foreclosure prevention.

• Considering buying a home using a contract for deed? Know your rights, responsibilities and resources.

• Legal Aid provides free civil legal assistance to low-income clients and can assist with several areas of law, including evictions and landlord disputes, foreclosure rights, public housing and Section 8 housing.