Minnesota Grants There are many grants available in this State to assist a home buyer purchase a home. By using these grants it makes it possible to purchase a home with little or no money down.  Below is a list of some of the grants available, as well as contact information for each. Some are State sponsored grants. Some are sponsored on the county or municipality level.  Understand that many of these grants have limited funding, and most have income restrictions, so it is important to work with your mortgage lender and the non profit administering the grant program to ensure availability of funds.  State Sponsored Bank Sponsored Matching Funds Programs Community/local Sponsored Grants Seller Funded Down Payment Assistance Programs State Sponsored  The State of Minnesota offers a soft second grants of up to $3,000, to be used for down payment and closing costs. There are no monthly payments required on this soft second. It must be repaid at the sale of the home. Below is a link to the State’s web site:  www.mnhousing.gov/consumers/home-buyers/loans/MHFA_003407.aspx Bank Sponsored Matching Funds Programs  Banks that are members of the Federal Home Loan Banking system also offer IDA savings accounts. Visit the Regional Federal Home Loan Bank web site for more information. Community/local Sponsored Grants Alexandria City Homestead Assistance Program (CHAP)  (320) 762-1311  Alexandria Greater Minnesota Housing Fund The Trails Development Gap Financing Program (GAP)  (651) 221-1997  Alexandria HRA Down Payment Assistance Program (DPAP)  (320) 762-1311  Alexandria MHFA Gap Financing Program (GAP)  (320) 762-1311  Austin/Mower County Homeownership Fund Program (507) 864-7741  Chaska Clover Ridge Owner Occupied Assistance Program (OOAP)  (952) 448-2851  Duluth Neighborhood Housing Services "Homeownership Program with Employers" in Lincoln Park Grant (HOPE)  (218) 727-8604  Duluth Neighborhood Housing Services of Duluth Homeownership Incentive Program (HIP)  (218) 628-1057  Duluth NHS/Hillside Homeownership Incentive Program (HIPP)  (218) 628-1057  East Grand Forks Downpayment Assistance Program  (218) 773-2371  East Grand Forks New Construction Incentive (NCI) Program  (218) 773-2371  Elliot Park Neighborhood Improvement, Inc. Homebuyers Assistance Program  (612) 335-5885  Hutchinson Housing & Redevelopment Authority Down Payment Assistance Program (DPA)  (320) 234-4451  Itasca County/Koochiching County KOOTASCA Community Action's Homebuyer Program (HBP)  (218) 326-8539  Mankato Homeownership Program (HOP)  (507) 387-8622  Mankato Revolving Loan Fund (RLF)  (507) 387-8622  Minneapolis Equity Participation Loan Program (EPL)  (612) 673-5289  Minneapolis Folwell Neighborhood Association First Time Home Assistance Program (FTHP)  (612) 588-3033  Minneapolis Hawthorne Homestead Program (HHIP)  (612) 339-0601  Minneapolis/MCDA Closing Cost Loan Program (CCL)  (612) 673-5289  Multi Cities Tri-County Actions Programs, Inc. Homeowner Gap Financing Program (GAP)  (320) 255-0705  Multi Counties Arrowhead Economic Opportunity Agency Inc Homeownership Opportunity Program (HOP)  (800) 662-5711  Multi Counties Headwaters Housing Development Corporation Two Note Program (TNP)  (218) 444-4732  Northfield Housing Assistance Program (NHAP)  (507) 645-8833  Pennington County Affordable Housing Program (AHP) Community Revitalization Fund Program (CRF)  (218) 637-2431  Pennington County Affordable Housing Program (AHP) Loan Pool Funds (LPF)  (218) 637-2431  Ramsey County FirstFirst Time Home Buyer Grants Program (FBAP)  (651) 266-8025  Red Lake County Affordable Housing Fund (AHF) Affordable Housing Loan Pool Fund (LPF)  (218) 637-2431  Red Lake County Affordable Housing Fund (AHF) Community Revitalization Fund (CRF)  (218) 637-2431  Rochester First Homes GAP Loan Program (GAP)  (507) 281-7396  St Paul Community Neighborhood Housing Services, Down Payment Assistance Program (DPAP)  (651) 292-8710  Thief River Falls Slow Second Mortgage Program (SSMP)  (218) 681-2500  Washington County First Time Home Buyer Grants Program (FBAP)  (651) 266-8025  Seller Funded Down Payment Assistance Programs There are several non profit organizations that allow a seller to “donate” funds to them at closing, which is then given to the buyer as a down payment assistance grant. Presently, the federal government is reviewing these programs to determine whether this practice is an acceptable lending practice. By using one of these programs it is possible to purchase a home with little or no money. The seller needs to be a motivated seller, and the home needs to be priced correctly. Usually the sales price is inflated to cover the “donation”. The home must be able to appraise at the inflated price. These programs are initiated by the lender, so it is important to work with a local lender before you start looking for a home. The lender will also know how present legislation is affecting the program. The two most commonly used programs are The American Dream DAP and The Nehemiah DAP. Below are links to their web site. American Dream:  http://www.americandreamdownpaymentassistance.com/dpa_app.cfm Nehemiah Corp:    http://www.nehemiahcorp.org/