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*
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.