Fridley Down Payment Assistance Deferred Loan
The City of Fridley currently offers down payment and closing cost assistance to first time homebuyers purchasing a home in Fridley.
NOTICE: To ensure funding we need a signed and executed purchase agreement and the application must be submitted at least FOUR WEEKS prior to closing.
The guidelines below are subject to change at any time without notice. Loan funds are subject to availability. Email or call for complete details.
Hablamos Español: 612-335-5856
About the Loan
- 0% APR.
- No monthly payments.
- Loan amounts up to $10,000 (income limits apply).
- No down payment required.
Property Eligibility
- Owner-occupied residential structures.
- 1-4 unit properties located in the City of Fridley.
- Townhomes, condominiums, and properties held in a trust are eligible.
- Loan approval is subject to credit and program guidelines.
- To ensure funding we need a signed and executed purchase agreement and the application must be submitted at least four weeks prior to closing.
Loan Details
- 0% APR.
- Fixed interest rate.
- Income limits apply. For households below 110% AMI, a loan amount up to $5,000 is available. For households below 80% AMI, a loan amount up to $10,000 is available.
- Loan term up to 30 years. If the borrower has not sold or transferred title and still occupies the property 30 years from the date of the loan, the loan is 100% forgiven. If the borrower sells, transfers title of the property is no longer occupied by the borrower prior to 30 years, the loan is 100% due and payable.
- Funds may be used for down payment or closing costs.
- Borrower(s) must be first time Homebuyer(s).
- Prior to closing the homebuyer(s) MUST attend a Home Stretch workshop or other valid homebuyers course offered through an approved counseling agency by the US Department of Housing and Urban Development (HUD).
The current loan terms and conditions stated, including interest rates, do not constitute a commitment to lend or an offer to enter into an agreement, and that such an offer may only be made pursuant to Minnesota Statutes, Section 47.206(3) and (4).
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