Down Payment Options

Learn about our down payment assistance options.

What Down Payment Assistance Options Are Available?

Your down payment is one of the most important aspects of your home purchase! By taking advantage of down payment assistance options from Lake Area Mortgage, you may be able to afford your first home, lower your interest rate, and reduce or eliminate private mortgage insurance. Use our home loan calculator to see how down payment assistance options could benefit you.

Down payment assistance may be available in the form of first-time homebuyer programs, home loan grants, or other special mortgage loan options. The goal of these programs is to help as many people as possible turn their dream of owning a home into reality.

Want to see if you may qualify for down payment assistance? Our mortgage loan officers are here to help.

Minnesota Housing Finance Agency Programs

  • Lake Area Mortgage offers eligible homebuyers (not just first-time homebuyers) down payment assistance options through the Minnesota Housing Finance Agency.
  • Qualifications and income restrictions for these programs vary, so apply online today or connect with a Lake Area Mortgage Loan Officer.

CDFI Loan Options

  • Community Development Financial Institution (CDFI) loans promote affordable loan options for underserved borrowers.
  • CDFI loan programs vary, with down payment options as low as 3% for eligible homebuyers.
  • Down payment assistance funds may also be available for low-income borrowers.

Federal Home Loan Bank Grants

  • Lake Area Mortgage can offer qualified borrowers assistance to help with down payment funds and closing costs.
  • These funds are awarded as a forgivable grant to borrowers who meet income, credit eligibility, and pre-purchase education requirements.
  • Grant funds are limited, so apply now and start working with a Lake Area Mortgage Loan Officer to see if you qualify.

Zero Down 10/1 ARM

  • Qualified borrowers can use our Zero Down 10/1 ARM loan to purchase a home with no down payment.
  • This option’s 10/1 ARM feature also means that the rate is locked for ten years before adjusting yearly.
  • Credit eligibility and mortgage insurance requirements apply.

Learn More About Zero Down 10/1 ARM



Smart Start 97

  • Our Smart Start 97 loan option allows eligible borrowers to finance a larger percentage of their home’s purchase price and have a smaller down payment.
  • Mortgage insurance may be waived for qualified borrowers who meet loan-to-value ratio requirements.

Learn More About Smart Start 97



Royal Flex

  • The Royal Flex program is a 10/1 adjustable rate mortgage with the added feature of allowing borrowers to apply using an International Taxpayer Identification Number (ITIN) instead of a Social Security Number.
  • The Flex program also has less restrictive credit eligibility requirements and offers the option to use alternative credit reporting if a standard credit score isn’t available.
  • Mortgage insurance waivers may be available for qualified borrowers.

Learn More About Royal Flex



Contact a loan officer to explore your down payment options today.

Contact Us Today

This is not a commitment to lend or extend credit. Restrictions may apply. Rates may not be available at time of application. This is not an offer to enter a loan agreement at a specific rate. Information and/or data are subject to change without notice. All loans are subject to credit approval. Not all loans or products are available in all states. Lake Area Mortgage™ is a division of Royal Credit Union. 1200 County Road E. Ste 200, Arden Hills, MN 55112; NMLS# 543781, Equal Housing Opportunity.

© Copyright 2023 – Lake Area Mortgage™, a division of Royal Credit Union – NMLS ID# 543781  

1200 West County Road E, Suite 200 | Arden Hills, MN 55112
Phone  : (651) 209-2900 | Fax: (651) 209-2929

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