Increase in Maximum Downpayment Loan Amounts Effective June 29

Increase in Maximum Downpayment and Closing Cost Loan Amounts
We recognize the current market is competitive for your borrowers as they face multiple bids, rising home prices, and a reduction in seller-paid closing costs. To meet these challenges and continue to support first-time homebuyer needs, we are increasing the maximum downpayment loan amounts for loans locked on or after June 29. 
What's New
Effective for loans locked on or after June 29, downpayment and closing cost loans will have the following maximum loan amounts:  
  • Deferred Payment Loan: Up to $7,500
  • Deferred Payment Loan Plus: Up to $8,500
  • Monthly Payment Loan: Up to $10,000
You are no longer required to calculate the amount of the downpayment and closing cost loan based on 5% of the purchase price. Instead, select the loan amount your borrower needs in increments of $100. Review the Downpayment and Closing Cost Loans Comparison for more information.  
New Notes and Updated Resources 
There will be new Deferred Payment Loan and Monthly Payment Loan Notes available in Forms Generator and on our website on June 29. We recommend you use Forms Generator in the loan commitment system to ensure you have accurate forms. 
  • If your loan is locked before June 29, you may use either the old or the new versions of the Notes.
  • If your loan is locked on or after June 29, use the new versions of the Notes.
Web pages and online resources will also be updated on June 29 to reflect these changes.
Looking Ahead 
We position our downpayment programs to be responsive to changing market conditions and borrower needs, while also meeting budget constraints. This may mean more frequent updates to our program limits or requirements. We appreciate your flexibility, and we will continue to communicate with you as we respond to an ever-changing market and industry.
Loan Commitment System Maintenance Tomorrow
Minnesota Housing’s loan commitment system will undergo scheduled maintenance and will be unavailable from 5:00 p.m. on Tuesday, June 28 through 7:00 a.m. on Wednesday, June 29.
During this time, lenders will not be able to:
  • Modify or edit existing commitments
  • Create forms in Forms Generator (forms can still be downloaded from the Lender web pages and manually produced)
This scheduled maintenance will occur at the same time as the regular lock-out period for new loan commitments from 5:00 p.m. on Tuesday, June 28 through 10:00 a.m. on Wednesday, June 29.
We apologize for the inconvenience and appreciate your patience.
Need a Minnesota Housing Refresher?

Training is not just for loan officers! Our Webinars are just as important for underwriters, processors, closers and post-closers. Visit the training page for more details and register for these upcoming Webinars:

Questions?
You can reach the Partner Solutions Team at 651.296.8215 or 800.710.8871 between 7:30 a.m. and 5:00 p.m. on business days.
400 Sibley Street, Suite 300 | Saint Paul, MN 55101 US
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