Carver County CDA Down Payment and Closing Cost Assistance Program

Are you a first-time or first-generation homebuyer looking to purchase a home in Carver County, but can't seem to find one in your price range? The Carver County CDA's Down Payment Closing Cost Assistance Program might be the key to homeownership for you.

Carver County CDA Down Payment Assistance (DPA) Program Guidelines

Carver County CDA First-Generation Set-Aside Program Guidelines

Apply for the Carver County DPA Programs here

Carver County CDA DPA funds are provided on a first-come, first-serve basis contingent on full application. A full application includes: 

  • Completion of an online Pre-Application 
  • Completion of a Home Stretch homebuyer education course (https://www.hocmn.org/workshop-calendar/) 
  • Mortgage Pre-Approval from a Carver County CDA DPA partner lender
  • Income Verification

Carver County CDA Down Payment Assistance FAQ

Down Payment Assistance (DPA) & First-Generation Set-Aside FAQ
General Program Overview:

  • *Please refer to program guidelines for exact thresholds and requirements.


What programs does the Carver County CDA offer for homebuyers?
Carver County CDA offers two Down Payment Assistance options:

  • Standard DPA Program
  • First-Generation Homebuyer Set-Aside Program

Both programs help eligible homebuyers with down payment and closing costs.

Can I apply for both programs?
No. Applicants are only eligible to receive assistance from one program:

  • Either the Standard DPA, or
  • The First-Generation Set-Aside

Applicants cannot layer or combine the two Carver County CDA programs. But, applicants can combine either Carver County CDA DPA funds with additional DPA from other organizations.

Eligibility Requirements
Who is eligible for these programs?
Eligibility generally includes:

  • Meeting income limits
  • Purchasing a home within Carver County
  • Using the home as a primary residence
  • Working with a participating lender
  • Completing homebuyer education (Home Stretch)

📌 Refer to program guidelines for exact thresholds and requirements.

Standard DPA Program
What assistance does the Standard DPA program provide?
The Standard DPA provides financial assistance to help cover:

  • Down payment up to 25% of the purchase price (up to $50,000)

What are the terms of the Standard DPA?
Assistance is provided as:

  • A deferred loan

Repayment may be required if:

  • The home is sold
  • The borrower no longer occupies the home

Loan terms include:

  • 20 years
  • 0% interest
  • 5% of the original loan amount is forgiven each year 

What are the terms of the First-Generation Set-Aside DPA?

The First-Generation Set-Aside DPA provides financial assistance to help cover:

  • Down payment costs up to $50,000

Assistance is provided as:

  • A deferred loan

Repayment may be required if:

  • The home is sold 
  • The borrower no longer occupies the home

Loan terms include:

  • 10 years
  • 0% interest
  • 10% of the original loan amount is forgiven each year

What are the income limits?
Income limits are based on:

  • 100% Area Median Income (AMI), or $131,500 for FY 2026
  • Not adjusted for household size

What types of homes are eligible?
Eligible properties typically include:

  • Single-family homes
  • Townhomes
  • Condominiums

The home must:

  • Be located in Carver County
  • Be owner-occupied as your primary residence

Do I need to use a specific lender?
Yes. You must work with a CDA-approved participating lender.

Is funding limited?

Yes. Both programs:

  • Have limited funding
  • Are available on a first-come, first-served basis
  • May close once funds have been fully allocated