New! Conventional Cash to Close Grants Coming Soon

New! Conventional Cash to Close Grants

Beginning August 3, third party grants will be available for a limited time to eligible conventional loan borrowers whose income is at or below the specified limit, based on county. Grants can be added to existing locks or when locking a new conventional loan.

Unlike our Deferred Payment Loan and Monthly Payment Loan, these grants do not need to be paid back. Borrowers can still layer other community seconds and Minnesota Housing’s downpayment and closing cost loans with these grants. Grants are available until funds are exhausted.

For the qualifying income limits by county and step-by-step instructions, please see the Conventional Cash to Close Grant Lender Guide. The income limits for the grant are based on qualifying income (not program eligibility income). 

Important: The Cash to Close Grant will impact the online commitment system beginning August 3 for all conventional loans. All existing and new conventional locks will need to complete an additional field in the online commitment system, regardless of whether the borrower is getting a grant or not. See details in the Conventional Cash to Close Grant Lender Guide

To learn more, register for an upcoming Critical Lender Update:

U.S. Bank Will Not Purchase if Homebuyer Education Completed After Closing 

Lenders continue to deliver loans in which the required homebuyer education was not completed prior to closing (not prior to purchase, as the July 6 eNews mistakenly indicated). U.S. Bank cannot purchase loans with this defect. If homebuyer education is required, it must be completed prior to closing. See U.S. Bank's Lender Bulletins 2017-07 and 2017-01

The Minnesota Housing Homebuyer Education Policy states:  

Minnesota Housing requires homebuyer education if all borrowers are first-time homebuyers and they obtain:

  • A conventional loan, and/or
  • A downpayment and closing cost loan.

Homebuyer education must be completed before closing and at least one borrower per household must provide a certificate of completion before closing. Minnesota Housing’s online commitment system requires lenders to input an education completion date that occurs prior to closing. 

Visit our website to find homebuyer education options in your area. 

New Webinar: All About Income
Due to popular demand, we have added our income eligibility training to our monthly lineup of Webinars. This hour-long training provides an overview of everything you need to know to successfully calculate income specific to Minnesota Housing loan programs. It will focus mainly on program eligibility income for first-time homebuyer loan programs.
Minnesota Housing Quality Control staff will be available to answer questions on how they review income calculations when auditing loan files.
This Webinar is recommended for underwriters, originators and processors. Register here: 
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 and register for our August Webinars: 
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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