Homeownership is Economic Development in Carver County

Communities thrive when people can afford to live, work, raise families and build a future. Carver County, MN, is one such community that has chosen to address homeownership as an important part of that equation, putting particular thought and action into removing barriers to home purchases. 

The Carver County Community Development Agency's (CDA) Down Payment Assistance Program helps qualified individuals and families become homebuyers by addressing the upfront costs of a down payment.

Funding is available now - apply today!

Down Payment Assistance

Many prospective homebuyers find coming up with an initial down payment more challenging than making an ongoing monthly mortgage payment. The Carver County CDA Down Payment Assistance Program is a tool designed to address that need.
The assistance is provided through deferred, 0% interest loans, subject to program requirements. 

Eligible buyers may qualify for:

• Standard Down Payment Assistance: Up to 25% of the purchase price, with a maximum loan amount of $50,000 on a 20-year term, with 5% of the original principal forgiven annually.
• First-Generation Homebuyer Set-Aside: Up to $50,000 for eligible first-generation homebuyers, on a 10-year term, with 10% of the original principal forgiven annually.

Repayment may be required if the home is sold or the borrower no longer occupies the property as their primary residence.

Who Can Apply?

Prospective buyers should review the current program guidelines before beginning the application process, as criteria may change. For FY2026, applicants must:

• Have an income not exceeding 100% of Area Median Income, or $131,500
• Purchase an eligible property in Carver County
• Occupy the property as a primary residence
• Work with a CDA-approved participating lender
• Complete the required homebuyer education.

Need for Assistance? Significant Demand

Families need housing they can afford. Incredible response to the program, beginning with its launch in 2025, illustrates the need for additional pathways to attainable homeownership in Carver County. 

Last year, the CDA awarded 19 loans totaling nearly $1 million in 2025. The participating households averaged approximately 60% of Area Median Income, not adjusted for household size, with an average home sale price of $321,000. The CDA subsequently considered additional funding and program changes, including establishing a dedicated First-Generation Homebuyer Set-Aside.

The second round of funding is open now -  fill out an application here!

Need for Assistance? Workforce Attraction and Retention

Housing and economic development are closely connected.

Carver County employers need access to a reliable workforce. Housing options across a range of incomes are essential to delivering that workforce. When people can afford to purchase a home in the communities where they live and work, they are more likely to establish long-term roots.

Need for Assistance? Community Development

Communities need a stable tax base. Homeownership helps residents develop a stronger sense of investment in the community in which they live. That emotional investment will then lead to increased neighborhood contributions and local business patronage, resulting in benefits well beyond the individual homeowner.

Beyond Finances

Applicants for the Down Payment Assistance Program must complete a Home Stretch homebuyer education course, obtain mortgage pre-approval from a CDA participating lender and complete the required income verification process.
The intent is to educate prospective homeowners to make future decisions on informed understanding of the financial responsibilities of purchasing and maintaining a home.

Learn More

For more information:

Review the current program guidelines and eligibility requirements through the Carver County CDA

Stop in at the Carver County CDA at 705 N. Walnut St., Chaska, MN

Call staff at 952-448-7715.