Grant at Closing vs. 3-Year Forgivable DPA
Two Minnesota down payment assistance paths — same goal, very different fine print.
| Feature | DPA Grant at Closing | 3-Year Forgivable DPA |
|---|---|---|
| Program Type | True grant — not a loan, not a lien | Second-lien loan, forgiven over time |
| Assistance Amount | 3.5% of purchase price | 3.5–5% of purchase price |
| Minimum FICO | 620 | 640 |
| Interest / Monthly Payment | None — grant funds carry no interest or payment obligation | 0% interest, no monthly payment |
| Repayment Risk | None — funds are never repaid, at any point | Unforgiven balance can come due if you sell or refinance before the 3-year note anniversary |
| Stackable with Seller Concessions | Yes — up to 6% | Not specified in current program materials — confirm with your loan officer |
| Eligible Loan Type(s) | FHA | FHA 30-year fixed or USDA 30-year fixed only |
| First-Time Buyer Requirement | Not specified in current program materials — confirm with your loan officer | None — open to repeat buyers too |
| Income Limits | Not specified in current program materials — confirm with your loan officer | None |
