New Downpayment and Closing Cost Loan Option

Partner Solutions Team
mnhousing.solution@state.mn.us or 651.296.8215/800.710.8871 
Monday-Friday
7:30 a.m.-5:00 p.m.
Upcoming Trainings
Minnesota Housing 101 Tuesday, September 9
1:30 - 2:30 p.m.
Start Up and Step Up Procedural Documents Wednesday, September 10
1:30 - 3:30 p.m.
Mortgage Credit Certificate (Homebuyer Tax Credit Program)
Thursday, September 11
10:30 - 11:30 a.m.
Loan Commitment System Thursday, September 11
1:30 - 3:30 p.m.
New Option Added to Deferred Payment Loan Program
Minnesota Housing is adding a new downpayment and closing cost loan option to its Deferred Payment Loan program. Starting on October 1, 2014, the Deferred Payment Loan program will have two options:
  • The existing Deferred Payment Loan option
  • A new Deferred Payment Loan Plus option
The new Deferred Payment Loan Plus option is available to Start Up borrowers and replaces HOME HELP, which ends on August 29.  Deferred Payment Loan Plus targets first-time homebuyers who need additional assistance to access homeownership. 
Deferred Payment Loan Plus offers up to $10,000 in the form a deferred loan, which borrowers may apply to their downpayment, closing costs or a principal reduction. 
Borrowers must work with a Minnesota Housing lender approved to offer Deferred Payment Loan Plus. Eligible borrowers must meet the Deferred Payment Loan eligibility requirements AND two of the four following criteria:
  • Single-parent household with a dependent
  • Household of four or more people   
  • Disabled household member
  • Front-end ratio of 28% or higher*
For a full list of eligibility requirements, refer to the Downpayment and Closing Cost Loan Comparison Chart.
Lender Application
Lenders interested in offering Deferred Payment Loan Plus must apply by filling out a lender application. Applications are due on September 15, 2014 to be eligible for the October 1 program launch. Minnesota Housing accepts applications on a rolling basis after September 15 as funding permits.
Increased Income Limits for Deferred Payment Loan
The existing Deferred Payment Loan program income limits for households of four or more people are increasing for commitments effective October 1, 2014. Refer to the income limits on our website.
HOME HELP – One Day Left!
The HOME HELP program is ending and lenders have one more day to lock remaining loans. You must lock HOME HELP loans before 5:00 p.m. on August 29. We cannot make exceptions to switch loans to HOME HELP after this date. Once you lock the loan, we must receive the HOME HELP Commitment Request by September 30, 2014.
Please use the current list of HOME HELP property inspectors, which was updated in August.
Reminder: Required U.S. Bank Privacy Act Notice
U.S. Bank MRBP recently updated the “Borrower Authorization of Release of Private Information” disclosure, which is required for all Start Up, MCC and Step Up loans closed on or after August 11, 2014.  The loan number is no longer required, but borrowers and co-borrowers must still sign this privacy act notice.
The privacy act notice is located on the U.S. Bank Home Mortgage - MRBP Division Allregs website. Find the notice under: U.S. Bank Lending Manuals > Housing Finance Authority > Minnesota > Minnesota Housing Finance Agency > Borrower Authorization.
New: Optional Explanation Letter
U.S. Bank MRBP added an optional “Explanation Letter” to its Allregs website. (Located in the same location as the “Borrower Authorization of Release of Private Information” disclosure.)
This document provides additional information on the purpose of the “Borrower Authorization of Release of Private Information” disclosure. The letter is optional and requires no signature from the borrower. 
400 Sibley Street, Suite 300 | Saint Paul, MN 55101 US
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