Lenders and realtors

Help expand access to homeownership in Minnesota

Minnesota—particularly the Twin Cities—has one of the largest racial homeownership gaps in the country. The Advancing Black Homeownership Community Fund is working to change that.

Mortgage professionals and real estate agents are playing a crucial role in connecting first-time homebuyers to the Advancing Black Homeownership Community Fund, helping to secure the wealth-building benefits of homeownership for generations to come.

Learn how you can support your clients and join this impactful work, below.

Learn more

Industry training video

Watch this brief video to understand how the Advancing Black Homeownership Community Fund works and how you can support your clients through the process.

This is the first step in becoming familiar with the program.

Be sure to also review the product terms and lender forms to complete your understanding.

Other helpful videos:
Completing the Interest Form: Your Buyer’s Experience
Using the Mortgage Lender Portal

Information and resources

Product Terms for the Advancing Black Homeownership Community Fund

This document includes details on eligibility, loan structure, use of funds, and repayment terms. It is intended for mortgage professionals and others supporting buyers through the process.

Open the Product Terms

Pre-Approval Letter requirements
Outlines what must be included in the pre-approval letter submitted by the buyer when they requests funds. Incomplete pre-approval letters will cause delays for the buyers.

Mortgage Underwriter Pre-Approval Attestation
Verifies that an underwritten pre-approval was completed before the buyer applied for Funds. This is a sample only – the original will be sent to you by the DPA lender. This form must be completed within 10 business days of receipt, or the buyer may be denied.

Timeline for mortgage lender
Provides key steps and deadlines for first mortgage lenders – from fund reservation through loan closing. This form will be shared with you by the DPA lender once the buyer has been approved.

Use of Funds form
This required form is completed by the first mortgage lender before loan closing. It outlines how the funds will be applied toward the home purchase. This form will be shared with you by the DPA lender once the buyer has been approved.

Mortgage

Note

Questions?  [email protected]

Program Fact Sheet for the Advancing Black Homeownership Community Fund

Use this Fact Sheet to introduce the program to your clients and help them understand how it works. Great for sharing at events, appointments, or via email!

Download the Program Fact Sheet

Frequently asked questions

The Advancing Black Homeownership Community Fund supports first-time homebuyers who live in the seven-county Minneapolis-St Paul metro area and self-identify as Black or African American, born in the United States, and a descendant of enslaved people in the United States.

In addition, buyers must be mortgage-ready and meet income limits. Learn more about eligibility and how to apply.

Note: Buyers that have submitted a purchase agreement are not eligilble to apply. If the buyer signs a purchase agreement before they are approved (issued a Fund Reservation), they will be denied.

Buyers submit requests for funds, which are reviewed in the order they are received. Processing times vary based on demand. You can help your buyer stay on track by ensuring the pre-approval letter and other required documents are complete and accurate before they apply.

Encourage your buyer to check their e-mail regularly—including spam or junk folders—for weekly status updates and next steps. Once assigned to a DPA lender, your buyer will attend an informational meeting (virtual or in person) to confirm their eligibility and sign the necessary attestations and releases.

Buyers receive up to 20% of the home’s purchase price, capped at $45,000. Funds are reserved for 90 days, with opportunity for one additional 60 day extension. Buyers are not required to use the full loan amount.

Funds from this program can be used for down payment and buyer closing costs, principal and permanent interest rate buydown, required work orders, home warranties and home inspections. In addition, up to $10,000 can be used to satisfy collections, judgements, liens or tax debts required by the first mortgage lender. Funds cannot be used to assume a first mortgage, cover valuation gaps or to pay the 3.5% FHA loan Minimum Required Investment (MRI).

Non-occupant co-borrowers and co-signors are not allowed.

Funds are provided as a zero-percent interest loan with no monthly payment. The first $20,000 is forgivable over five years, if the buyer lives in the home as their primary residence. Any remaining funds must be repaid if the buyer sells the home or it’s no longer their primary residence. Repayment is waived after 30 years of continuous ownership and occupancy. Additional terms apply.

The Advancing Black Homeownership Community Fund goes beyond traditional down payment assistance by offering flexible funding that can be not just for the down payment but also for other key expenses that help buyers secure and sustain homeownership.

The buyer also receives continued support through two post-purchase sessions with a HUD-Certified Housing Counselor, designed to support early homeownership stability and preservation. Each session includes a $2,500 stipend paid to the buyer, up to $5.,000.

The Advancing Black Homeownership Community Fund was developed in partnership with aspiring and current homeowners, as well as industry professionals.

This initiative is a collective effort, with several organizations working together to bring the program to the community. Partners include the Minnesota Homeownership Center, Twin Cities Habitat for Humanity, Build Wealth Minnesota, NeighborWorks Home Partners, PRG, Inc., Project for Pride in Living (PPL) and the GroundBreak Coalition.

Inquiries should be directed to [email protected].