Down-Payment Assistance

0% Down Payment Assistance LoansDown Payment Assistance graphic

The Economic Development Board applies for grants to help Cambridge residents bridge the gap to building a new home - the down payment! The Board uses these funds to work with your home lender to give your a zero-percent down-payment loan.


To provide financial assistance to individuals who would qualify for a mortgage loan at a financial institution if they had sufficient down payment. Download information and an application for assistance purchasing a NEW HOME HERE or an EXISTING HOME HERE.


  • Graphic of checklistFor individuals buying or building a primary residence - not for speculative projects

  • $200 loan fee

  • Subject to availability of funds, loans are limited to 15% of purchase price with a maximum of $15,000 for those purchasing an existing home; or $30,000 for those building a new home, including one in Harvest Meadows.

  • CED needs a full, complete application, employment verification and lender pre-approval letter prior to a regularly scheduled Board meeting the 2nd Wednesday of each month. Applications will be reviewed at a regularly scheduled Board meeting. No exceptions.

  • Residence must be within the city limits of Cambridge

  • Existing Residence: 0% fixed rate loan with a 10-year maturity and deferred payments for 6 months after closing

  • New Build: 0% fixed rate loan with a 10-year maturity and deferred payments for 6 months on first $15,000, 2% on amount loaned beyond that and up to $30,000

  • Borrower must own and reside in home for the length of the loan or repay the balance in full upon sale of the home

  • Borrow must provide proof of insurance with Cambridge Economic Development (CED) listed as a loss payee (second on mortgage)

  • Borrower must provide proof of property taxes being paid

  • Your loan payment will be added to your monthly utility bill

  • CED will file a secondary lien on the property which will not be released until loan has been paid in full

  • Borrower must have approval from a financial institution to fund the purchase with a down payment and a letter stating such will be provided to CED.

  • Checks will be payable to closing agent/lender and issued on closing date

  • All applications must be approved by the CED before funding

  • If lender is out of the area, it still must be approved by CED

  • If borrower is building a new home, it must be complete within 18 months of the closing date, or loan must be paid in full.

If you have any further questions please call the executive director of economic development at 308.697.3711 or [email protected].