New Maximum Downpayment and Closing Cost Loan Amounts
2015 was a great year for Minnesota homebuyers. We’re thankful for partners like you, who helped us achieve the most home mortgage loan commitments in a program year to date.
High loan production means record demand for downpayment and closing cost loans. We’re happy to announce an increase in the maximum loan amount for the Monthly Payment Loan. In order to stretch our Deferred Payment Loan resources, we slightly lowered the maximum amount for this program.
Loans are still available up to the greater of $5,000 or 5% of the purchase price. If 5% of the purchase price is more than $5,000, these new maximum loan amounts apply:
- Monthly Payment Loan: $10,000 maximum (was $7,500)
- Deferred Payment Loan: $5,500 maximum (was $6,000)
There is no change to Deferred Payment Loan Plus, which has a $7,500 maximum for eligible borrowers.
Maximum loan amounts are effective for new loans locked in the Commitment System on or after February 3.
- Participate in a Downpayment Critical Lender Update Webinar:
- Several manuals, forms, and marketing resources will be updated as a result of these changes. Please visit our website next week to ensure you are using current versions and discard old versions.