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By Tyler Thompson · Licensed Real Estate Agent · Updated May 5, 2026

Homebuyer Programs in Chanhassen, MN (2026)

Population: 26,469 | Median home price: $560,000 | Est. closing costs: $11,000 - $17,000

Skyline of Chanhassen, MN

Chanhassen is an affluent west-suburban Twin Cities community located primarily in Carver County (with a small portion extending into Hennepin County), about 15 miles southwest of Minneapolis, with a population of roughly 26,500 and a median home price near $560,000. Despite the higher price point, first-time buyers in Chanhassen have access to one of the most generous county-level DPA programs in Minnesota: the Carver County CDA Down Payment and Closing Cost Assistance Program offers up to 25% of the purchase price (capped at $50,000) as a forgivable second mortgage at 0% interest, with 5% of principal forgiven annually over 20 years. The Carver County Community Land Trust provides additional permanently affordable home options. Twin Cities Habitat for Humanity also serves Carver County through its TruePath Mortgage and homeownership program, and NeighborWorks Home Partners' Welcome Home Down Payment Assistance offers up to 30% of the purchase price (capped at $50,000) as a zero-interest forgivable loan over ten years. Combined with state programs from Minnesota Housing, eligible Chanhassen buyers can stack up to $50,000+ in down payment and closing cost help.

County Programs in Carver County

Carver County CDA Down Payment and Closing Cost Assistance Program
Type:
Forgivable Loan
Amount:
Up to 25% of purchase price, not to exceed $50,000
First-time only:
Yes
Carver County Community Land Trust
Type:
Deferred Loan
Amount:
Subsidized purchase price on permanently affordable CLT homes; subsidy varies by home and household
First-time only:
Yes

State Programs in Minnesota

Minnesota First-Generation Homebuyer Loan Program
Type:
Deferred Loan
Amount:
Up to ,000
First-time only:
Yes
Minnesota Housing Deferred Payment Loan
Type:
Deferred Loan
Amount:
Up to ,500
First-time only:
Yes
Minnesota Housing Monthly Payment Loan
Type:
Repayable Loan
Amount:
Up to ,000
First-time only:
No
Minnesota Housing Start Up Program
Type:
Government-Insured Mortgage
Amount:
First mortgage with as little as 3% down
First-time only:
Yes
Minnesota Housing Step Up Program
Type:
Government-Insured Mortgage
Amount:
First mortgage; can also be used to refinance
First-time only:
No

Federal Programs

FHA Loans
Type:
Government-Insured Mortgage
Amount:
Up to FHA county loan limits ($541,287 floor to $1,249,125 ceiling for single-family in 2026)
First-time only:
No
FHLBA Community Partners Product
Type:
Forgivable Loan
Amount:
Up to $20,000 in home purchase assistance for down payment and closing costs
First-time only:
No
FHLBA First Time Homebuyer Product
Type:
Forgivable Loan
Amount:
Up to $17,500 in home purchase assistance for down payment and closing costs
First-time only:
Yes
FHLBA Workforce Housing Plus+
Type:
Forgivable Loan
Amount:
Up to $15,000 in home purchase assistance for down payment and closing costs
First-time only:
No
Good Neighbor Next Door (HUD)
Type:
Government Property Sale Program
Amount:
50% discount off the list price of HUD-owned homes
First-time only:
Yes
Home Possible Mortgage (Freddie Mac)
Type:
Government-Guaranteed Mortgage
Amount:
Up to conforming loan limits ($832,750 standard / $1,249,125 high-cost in 2026); 3% minimum down payment
First-time only:
No
HomeReady Mortgage (Fannie Mae)
Type:
Government-Guaranteed Mortgage
Amount:
Up to conforming loan limits ($832,750 standard / $1,249,125 high-cost in 2026); 3% minimum down payment
First-time only:
No
HUD $100 Down Program
Type:
FHA-Financed HUD REO Purchase
Amount:
Only $100 down payment required (vs. standard 3.5% FHA down payment). HUD may also pay up to 3% of buyer's closing costs.
First-time only:
No
USDA Rural Development Loans
Type:
Government-Guaranteed Mortgage
Amount:
100% financing (no down payment required); loan amount up to appraised value
First-time only:
No
VA Loans
Type:
Government-Guaranteed Mortgage
Amount:
No loan limit for veterans with full entitlement (0% down at any price); partial entitlement subject to conforming limits ($832,750 standard in 2026)
First-time only:
No

Nonprofit Programs

Twin Cities Habitat for Humanity Homeownership Program
Type:
Repayable Loan
Amount:
Affordable mortgage with monthly payments at or below 30% of household income; option to use TruePath Mortgage on the open market or purchase a Habitat-built or Habitat-renovated home
First-time only:
No
Welcome Home Down Payment Assistance
Type:
Forgivable Loan
Amount:
Varies by household need
First-time only:
Yes

How to Apply

Step 1:

Check your eligibility. The Carver County CDA program requires first-time homebuyer status (no homeownership in the past three years), household income at or below 100% AMI (currently $132,400), liquid assets under $50,000 after closing, and a purchase price at or below $415,000.

Step 2:

Complete homebuyer education. Approved Home Stretch courses are available through nonprofit partners across the Twin Cities Metro. Carver County CDA can refer you to approved providers; call Melodie Bridgeman at 952-556-2778 for guidance.

Step 3:

Contact Melodie Bridgeman at the Carver County CDA at 952-556-2778 or melodieb@carvercda.org to confirm current funding availability and start your application. Note

Step 4:

Get pre-approved for a mortgage with a Minnesota Housing-approved lender. Ask about pairing the Carver County CDA assistance with Minnesota Housing first mortgage products and additional state DPA loans.

Step 5:

Find a home in Chanhassen within Carver County CDA price limits ($415,000 cap). For higher-priced homes outside CDA limits, ask about NeighborWorks Home Partners' Welcome Home program (up to 30% / $50,000 cap) and Twin Cities Habitat's TruePath Mortgage.

Step 6:

Submit your applications and close on your home as your primary residence. Most programs require ongoing primary residency for the life of the assistance loan.

Frequently Asked Questions

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