Down Payment Assistance Program

Financial Assistance to Homebuyers

The Springfield Economic Development Authority (EDA) is dedicated to supporting workforce housing and encouraging investment in new residential construction. This program will provide financial assistance to qualified homebuyers in the form of a forgivable loan, reducing upfront costs, and promoting long-term housing stability in the community. The EDA may award 6-8 forgivable loans. This program is dependent on a grant award from the Minnesota Department of Housing, Housing Trust Fund Grant Program, and all requirements of the grant must be met.

Program Application
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Program Structure

  • Assistance Amount: Up to 5% of the purchase price of the home, with a maximum award of $20,000.
  • Loan Forgiveness: Structured as a forgivable loan, with full forgiveness granted after 10 years of continuous ownership and occupancy as the primary residence.
  • Conditions for Forgiveness:
    • The home must be maintained as the purchaser’s primary residence.
    • All property taxes and municipal utility accounts must be current throughout the 10-year period.
  • Repayment Obligation: If the property is sold, transferred, or no longer serves as the purchaser’s primary residence before the 10-year term ends, the assistance amount must be repaid in full at the time of sale, transfer, or at the time it is no longer the owner’s primary residence.

Eligibility Criteria

  • Purchaser must have an income less than 115% of the State Median Income at the time of purchase, as determined by HUD guidelines. (2025 - 115% of SMI is $134,435)
  • Income verification will be based on the most recent tax statements at the time of closing.
  • Assistance is limited to newly constructed housing, built after the adoption of this program, located within the City of Springfield.

Program Safeguards

  • Lien/Deed Restriction: All awarded properties will include a recorded lien and/or deed restriction securing the assistance and ensuring compliance with program terms.
  • Insurance: The applicant must maintain property insurance in an amount equal to the replacement value of the home. Springfield EDA must be listed as a loss payee on the homeowner’s policy.
  • Expiration: The program will remain in effect only during the active State of Minnesota Housing Trust Fund Grant Period. All closings must be completed prior to the program expiration date in order to qualify.
Program Application

Application Process

Step 1

Application Form

Applicants must complete the Springfield EDA Down Payment Assistance loan application form, providing contact information for themselves as well as their mortgage banker and information regarding their home purchase.

Step 2

Pre-approval Notice

Signed letter from mortgage lender approving purchaser for the remainder of the loan needed.

Step 3

Financial Documentation

Applicants must submit personal income tax statements for the most recent year, showing their eligibility for the program.

Program Application

Community Impact

This program will:

  • Reduce financial barriers to home ownership for moderate-income households.
  • Encourage new housing construction and investment within Springfield.
  • Promote long-term community stability by incentivizing 10-year primary residence commitments.
  • Strengthen the local tax base through sustained homeownership.
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Down Payment Assistance Application Form

Step 1 of 4

This field is for validation purposes and should be left unchanged.

Applicant Information

Name(Required)
Address

Co-Applicant Information (if applicable)

Name
Address
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