EMHI Down Payment Assistance

View/Download PDF Fact Sheet

View/Download PDF Application


  •  A 0%, deferred loan up to $2,500 for households of color or Hispanic ethnicity
  • Maturity date is the earliest to occur of:
                                - If a sale of the property occurs or a transfer of any part of the property
                                – If any owner of the property experiences bankruptcy
                                - If the First Mortgage is satisfied (paid off)
                                – If foreclosure procedures occur on the First Mortgage
                                – If the property is no longer the primary residence of the borrower
                                – If the borrower is in default with the loan terms, for any reason (for example, non‐payment of real estate taxes, or failure to maintain property insurance on the home)


  • Applicant signs a note and mortgage that puts a lien against the property
  • Funds must be used in conjunction with affordable first mortgages:
                              – Fixed‐rate loan, minimum amortization of 30 years, and a minimum term of 15 years. Note: The EMHI loan is co‐terminus with the first mortgage.
                              - Down payment required by product cannot exceed 10 percent of sale price. (Note: This guideline does not preclude a buyer from making a larger down payment if additional personal funds are available.)
                              – The program preference is for below‐market or market‐rate loan products. The buyer’s first mortgage interest rate cannot exceed current market rate plus 1 percent at the time of application by the Borrower.
                              – Housing expense and debt to income ratios of at least 28/36 allowed by the loan product (e.g., 29/41 is acceptable). Lenders are encouraged to use community home buyer products with flexible underwriting guidelines.
                              – Closing costs (excluding pre‐paids) cannot exceed 3.5% percent of the loan amount. Note: This does not preclude buyers with liquid assets above $5,000 from using their excess funds to buy down the interest rate. Rural Development and Minnesota Housing Finance Agency Loans are excluded from this provision.
                               - “Roll over” loans are not acceptable. “Roll over” loans have a fixed interest rate, short maturity, and a term to be negotiated.

Needed Documentation

  • A complete Uniform Residential Loan Application, signed and dated within the last 60 days
  • Certificate of Completion for the applicant provided by a Home Ownership Center certified Minnesota Home Stretch organization.
  • A complete EMHI Application Supplement, signed and dated within the last 60 days
  • SWMHP Privacy Policy
  • Final Good Faith Estimate
  • Final Truth In Lending Document
  • Copy of the title commitment
  • Closing Instructions
  • Applicant will be responsible for recording fee, mortgage registration taxes and overnight fee
E‐mail the application to lofficer@swmhp.org
by fax at 507‐836‐8866

Documents Delivered to the SWMHP:

  • Executed note immediately after closing (original)
  •  Executed HUD 1 Settlement Statement immediately after closing (copy)
  • Recorded Mortgage 60 days after closing (original)