Up to $10,000 available in down payment and closing cost assistance to those who qualify

Dakota County Basic Program Guidelines & Details

• Loans are 30-year fixed rate mortgages and can be FHA, VA insured mortgages.

• Income Limits are $83,900 for a one or two person household and $92,290 for households with three or more persons.

• Maximum Purchase Price = $276,683

• Eligible properties include single family homes, town homes and condominiums located in Dakota County, Minnesota.

• Buyers must be a first time homebuyer or someone who has not owned their primary residence in the last three years.

• Traditional down payment and closing cost requirements apply.

• Home buyers must put a minimum of $750 down

• Buyers must occupy the home as their primary residence after purchase.

• First Time homebuyer funds are reserved on a first-come, first-serve basis

• Buyers MUST attend Home Stretch Home Buyer Education Classes

To apply for a Dakota County First Time Homebuyer Loan, contact a participating mortgage lender like us. The lender will review your income and credit history to determine whether or not you will qualify for the loan.

It is important that you know not all lenders are able to do MHFA, City, County, Bond loans, FHA or VA loans. We are proud to be a provider of many of these loans, including the Dakota County First-time home buyer down payment assistance program.

Knowing your full exact situation will help us determine if a government assistance loan programs are right for you. Being pre-approved also gives you ultimate buying power and the upper hand in negotiating.

There are three levels of assistance, based on household income:

• Level 1. Households earning at or below 50% of median income are eligible for 10% of the base first mortgage amount, up to $10,000.

• Level 2. Households earning 51-80% of median income are eligible for 5% of the base first mortgage amount, up to $7,500.

• Level 3. Households earning more than 80% of median income up to the program limits are eligible for 2.5% of the base first mortgage amount.

Down payment and closing cost assistance funds are reserved on a first-come, first-serve basis. At the time you apply for a First Time Homebuyer Loan through a participating mortgage lender, you will also apply for down payment assistance.

Home buyer education is taught by professionals in the home buying field. Home Stretch ® is a nine-hour course that is held monthly. Either over three days from 6 to 9 p.m. each night, or an all day Saturday class. Participants must attend all three nights or the single all day session full day to complete the course. The cost to attend is $15 per household for Dakota County residents and $25 per household for non-residents.

Pre-registration is required. Call 651-552-3681 to register.

Pre-Purchase Counseling Program
The CDA's Pre-Purchase Counseling Program also provides free individual counseling to Dakota County homebuyers and can be accessed anytime during the home buying process, whether you are buying a home now or in the future. This program assists homebuyers in creating a plan to become successful homeowners. The plan may include: credit repair, creating a household budget in order to save for a down payment on a home, identifying mortgage loan products that best meet the household's needs and/or examining and answering questions about loan documents.

New construction is eligible in Apple Valley, Burnsville, Eagan, Empire Township, Farmington, Hastings, Inver Grove Heights, Lakeville, Mendota Heights, Rosemount, South St. Paul, Sunfish Lake and West
St. Paul.

Homes are considered new if never previously occupied.