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Down Payment Assistance Programs in MN for First Time Home Buyers in 2017

Down Payment Assistance Program Guidelines | First Tiime Home Buyer Classes

What do first time homebuyers programs offer?

Face it, the biggest obsticle to buying your first home is either poor credit, or the lack of downpayment money. Mortgages Unlimited partners with the Minnesota Housing Finance Agency (MHFA) to provide down payment assistance loans to Minnesota first time home buyers. Down payment assistance programs generally assist you by offering small loans to cover part of your required downpayment. So they help with down payment, but can not help if you have bad credit. These programs generally are not free money, gifts, or grants. They are loans that need to be paid back.

MHFA Minnesota Housing Finance Agency

Who is eligible for a Minnesota Housing First Time Home Buyer programs?

First, understand you need to qualify for the basic underlying loan itself. There are income, and familly size requirements. The loan is usually an FHA loan, but can also be standard conventional loans, USDA Rural Housing Loans, or even a VA loan. Most of these programs require a down payment, and all loans have closing costs that need to be paid to buy a home. Adding all this up, can make it hard to save all the needed money to buy a home.

Basic Assistance Criteria:

  • Are a first time homebuyer, meaning you have not owned a home in the past three years? ( Start Up program )

  • Are a move up buyers, which means you HAVE owned a home in the past ( Step Up program )

  • Have filed Federal income tax return copies for the last three years

  • Have a middle credit score of at least 640 for a loan, but requirement can be higher depending on underlaying loan type (FHA, VA, USDA, Conventional)

  • Meet first time home buyer income and house price limits

These charts are subject to change, and are accurate as of September 1, 2017. Please call for current information

 

Area

1-2 People

3+ Persons

Income Limits

11-County Metro

$90,400

$103,900

Dodge/Olmsted Counties

$88,600

$101,800

Balance of State

$80,400

$92,500

 

 

 

 

House Price

Area

Max Price

Max Purchase Price Limit

11-County Metro

$306,000

Balance of State

$253,800

Downpayment assistance program MNMHFA Minnesota Housing Finance Agency

Minnesota Housing DOWN PAYMENT ASSISTANCE PROGRAMS

Down Payment Assistance is available under three different options, depending on property location, household income, and family size.

Apply for down payment assistance

Minnesota Housing Deferred Payment Loan - No payments due today.  (as of 9/1/2017)

  • For first-time homebuyers only, must be combined with the Start Up/Step Up program loan
  • Two loan options
    • Deferred Payment Loan - maximum loan amount up to of $8,000
    • Deferred Payment Loan Plus - maximum loan amount up to $10,000 for borrowers who meet additional targeting criteria. Sole head of household with at least one depoendent residing in home, household of four or more people, disabled household member, housing only debt ratio higher than 28% of income.
  • Deferred loan with 0% interest, repaid when property is sold, refinanced, or is no longer primary residence
  • Minimum 640 credit score, but requirement can be higher depending on underlaying loan type (FHA, VA, USDA, Conventional)
  • Start Up home cost limits
    • 11-County Metro: $306,000
    • Balance of State: $253,800
  • Loan term equal to first mortgage term with 0% interest, repaid when property is sold, refinanced, or is no longer primary residence
  • Homebuyer education required. Attend Home Stretch for in-person training, or Framework for online training.
  • Meet income limits listed below

Minnesota Housing Deferred payment loan income limits
Household Size Metro Area* Dodge/Olmstead Counties Balance of State
1- 2 Person $69,000 $69,000 $62,000
3 Person $77,000 $77,000 $69,000
4 Person $86,000 $86,000 $76,000
5 Person $93,000 $93,000 $82,000
6 Person $100,000 $100,000 $89,000
7+ Person $103,900 $101,800 $92,000


Apply for down payment assistance

Minnesota Housing Monthly Payment Loan - Payments due right away in conjunction with your regular mortgage loan

  • Must be used with Start Up, Step Up (with First Mortgage)
  • Loan amount up to the greater of $12,000 or 5% of the purchase price or loan amount
  • 10-year loans
  • Minimum 640 credit score, but requirement can be higher depending on underlaying loan type (FHA, VA, USDA, Conventional)
  • Start Up or Step Up home cost limits
    • 11-County Metro: $306,000
    • Balance of State: $253,800
  • Meet income limits listed below
  • 10-year loan term with monthly payments, interest rate equal to first mortgage rate
  • Homebuyer education required if using Start Up. Attend Home Stretch for in-person training, or Framework for online training.

Minnesota Housing Monthly Payment Loan Assistance  Income Limits

Household Size

 Metro Area

Dodge/Olmsted

All other counties

1-2 Person

$90,400

$88,000

$80,400

3+ Person

$103,900

$101,800

$92,400

The 11-county Twin Cities Area is defined as: Anoka, Carver, Chisago, Dakota, Hennepin, Isanti, Ramsey, Scott, Sherburne, Washington and Wright Counties.

mn down payment assistance programs

APPLY for your First Time Home Buyer Loan and Down Payment Assistance in MN

Applying is easy. Simply call our Loan Expert as (651) 552-3681, or APPLY ONLINE 24/7.

By applying, you are not obligating yourself to anything.  Rather you are simply giving us all the information needed to determine what programs you qualify for, how much house can you buy, what would the payments look like, and do you qualify for down payment assistance. If it all looks good, we can move to the next step, full loan Pre-Approval.  if not, it didn't hurt anything for trying.


More Information on first time home buyer programs and down payment assistance in MN

Click the following links for program brochures and more information on:


Why Use Mortgages Unlimited for your down payment assistance program in MN

When you decide to buy your first home in Minneapolis, St. Paul, Duluth, Rochester, Eagan, Woodbury, St Cloud, Marshall, or anywhere in Minnesota, and you need down payment assistance, your search for a home loan should start and end right here with Mortgages Unlimited.  With so many lenders to choose from in the greater metro area, and nationally, you need to choose one you can trust to find the mortgage loan that’s best for you.

See some of our Awards and Recognitions as a top rated mortgage company in MN.

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33 Wentworth Ave E - Suite 290
St Paul, MN 55118

(651) 552-3681  

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My services available only for properties located in Minnesota, Wisconsin, and South Dakota. PLEASE DO NOT KEEP US A SECRET from your FRIENDS. Licensed as Mortgages Unlimited, Inc. Nationwide Mortgage License # 225504. Joe Metzler NMLS Originator Lic # 274132. As a Lenders One partner, we are part of the 3rd Largest Retail Mortgage Originators in the country. We are consistently ranked as one of the top mortgage lenders in Minnesota by Minneapolis St Paul Business Journal. Any use or duplication of any materials is  strictly prohibited.  All images, text, and materials © 1998 - 2017 Joe Metzler. This is the private web site of Joe Metzler, NMLS #274132. All Rights Reserved.

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