Carver County CDA Down Payment and Closing Cost Assistance Program

Are you 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.

Find the Carver County CDA Down Payment and Closing Cost Assistance Program Guidelines here

We have closed pre-applications for the Down Payment and Closing Cost Assistance Program due to the overwhelming number of submissions we've received. We're working hard to process the applications already in hand. Please check back here for future program updates. We appreciate your understanding!

Program Overview: Carver County CDA has created a down payment and/or closing costs assistance program to encourage homeownership in Carver County. This program will provide an affordable pathway for qualified low to moderate income households achieve first-time homeownership.

Eligible Use of Funds: The loan funds can be used for down payment and closing costs. The applicant(s) cannot receive any portion of these funds as cash.

Loan Amount: Eligible applicant(s) can receive a maximum of 25% of the purchase price, not to exceed $50,000. 

Loan Terms: This is a forgivable, 20-year, zero percent (0%) interest rate loan with 5% of the original loan principal forgiven annually as long as the original homeowner(s) owns and resides in the home. The applicant(s) are required to sign a Note and Mortgage.

Loan Security: All loans will be secured by a mortgage in favor of the Carver County Community Development Agency (CDA). 

Applicant Eligibility: 

  • First-Time Homebuyer Status: Applicant(s) must be a first-time homebuyer (a person or household that has not owned a home within the last 3 years). Non-occupant co-applicants/borrowers are not allowed.
  • Income Limit: Household income must be at or below 100% of the Area Median Income (AMI) for Carver County, currently at $132,400. Income is not adjusted for household size.
  • Asset Limits: Applicant(s) do not own other real estate. Liquid assets may not exceed $50,000 after closing (excludes retirement accounts, life insurance, college savings accounts).
  • Education: At least 1 applicant must attend a Home Stretch homebuyer education workshop within the last 12 months, and it was completed PRIOR to submitting a purchase agreement.  We do not accept Framework. A copy of the completion certificate is required to receive a CDA commitment of funds.
  • Debt-to-Income Ratio: Applicant(s) “debt-to-income” ratio cannot exceed 50 percent.
  • Housing Ratio: Applicant(s) minimum housing ratio cannot be less than 25 percent.
  • Current on Debt Payments: Applicant(s) must be current on any ongoing debt payments.
  • Minimum Contribution: Applicant(s) must contribute a minimum of $1,000 of their own funds toward the purchase of the home. Earnest money can make up part or the entire requirement.

Property Eligibility:

  • Purchase price cannot currently exceed $415,000.
  • Single-family detached homes, duplex or twin homes, condominium units, and townhomes in Carver County used as the homebuyer’s principal place of residence.
  • First mortgage must be a prime/A-rated fixed rate mortgage loan. Conventional, FHA, and VA mortgages are acceptable.
  • Funds can be layered with other Down Payment Assistance programs.

Property Requirements: 

  • House must be ‘move-in’ ready condition (no major construction or repairs needed).
  • House must be primary residence of Applicant(s) and homesteaded.
  • House must have an appraised value equal to or greater than all loans.
  • Homeowner(s) must secure homeowners’ insurance for the property.
  • Property must conform to all applicable zoning ordinances and possess all appropriate use permits.
  • An independent full home inspection is required prior to closing. Note there are no minimum property standards.

Application Fee: Applicant(s) are responsible for all filing fees at the courthouse and title search costs. There is an application fee of $100 for all applicants.

Application Process: The Carver County CDA Community Development staff will administer this program. The Carver County CDA has selected the Center for Energy and Environment (CEE) to service the loan. Please visit the Carver County CDA website to complete the initial Pre-Screening Pre-Application and for more information. 

Disbursement Process: Applicants will be considered on a first-come, first-served basis by the date and time of receipt of a complete application package. 

  • All applicants must complete a Pre-Screening Pre-Application (form on website) to help determine program eligibility. If eligible, applicants will move forward with a full application and underwriting process to determine size of the loan.
  • If the initial eligibility screening deems the household eligible, then CDA staff will submit an intent to proceed. The applicant(s) must sign the intent to proceed for the full underwriting process to begin. If the applicant(s) wishes to proceed, they will need to pay the processing fee to the Carver County CDA.
  • After the loan closing, the title company must provide the Carver County CDA with the original signed loan documents including the Note and Closing Disclosure, the Title Insurance Policy, and a copy of the first mortgage executed Closing Disclosure.
  • Previous recipients of program benefits are ineligible. Awards are subject to funding availability.