Dakota County MN First Time Home Buyer Loan Program

Whether you are buying an existing home or building a new one - a Dakota County First Time Home buyer Loan may help you make homeownership a reality. Homebuyers accessing a First Time Homebuyer Loan may qualify for a below market interest rate may also be eligible for Down payment and Closing Cost Assistance.

Dakota County First Time Home Buyer money - Apply online and be ready to go!

Most Minnesota city, and county mortgage and down payment assistance funds are limited, and on a first-come, first-serve basis, including this one. Contact us as early as possible in the home buying process to be sure you are qualified. If you have questions about the home buying process, call 651-552-3681, or APPLY online 24-hours a day via our secure application. There are no costs or obligations.

To apply for a Dakota County First Time Homebuyer Loan, just call us at (651) 552-3681, schedule an appointment, or complete the online application. We will review your income, credit, and overall picture to determine whether or not you will qualify for this, or any other first time home buyer program in Minnesota.

It is important that you know not all lenders are able to do the Dakota County First Time home buyer Program. 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.

Down payment & Closing Cost Assistance Program

In addition to mortgage financing, eligible buyers using a Dakota County First Time Home buyer Loan can access funds through the CDA's Down payment and Closing Cost Assistance Program to help with the initial costs of owning a home. The CDA offers two types of down payment and closing cost assistance. Each may be used individually or in combination with each other.
In addition to grant assistance, income eligible buyers may access down payment and closing cost assistance loans of up $8,500. These loans are zero interest, deferred loans that are paid back at the end of the 30-year mortgage term or when the home is sold or refinanced. Eligibility is based on the buyer's gross household income adjusted for family size and the successful completion of a Housing Quality Standards Inspection.

Dakota County Down Payment and Closing Cost Assistance Program Guideline

Basic Loan Requirement

• Must qualify for the basic underlying loan program. Can be FHA, VA, conventional loan

Credit Score requirements

• 660 middle credit score for FHA and VA loans
• 640 middle credit score for HFA preferred (conventional) loans

Down Payment Required:

• Borrower MUST contribute a minimum of $1,000 of their own money towards the purchase of the home

Debt ratio requirement

• 50% maximum debt ratio (this is new house, plus cars, credit cards, student loans, etc)

Eligibility Criteria

• First time buyers (all borrowers and spouses)
• Most show last three years federal tax returns (all borrowers and spouses)
• Principal residence only
• Mobile homes NOT allowed
• Must be legally in the USA

Income Limits

Household income - includes income of applicants, spouses, and persons expected to be living in the home

FIRST TIME BUYER

• 1 or 2 person household: $124,200
• 3 or more people household: $142,800

REPEAT BUYER

• $185,700

House price limits

• Home purchase price may not be higher than $515,300 for single family home, $659,550 for duplex in Dakota County, MN.

Eligible properties

• Existing single family homes, town homes, FHA approved condominiums, new construction homes, or duplexes anywhere in Dakota County, MN.  Including the cities of Apple Valley, Burnsville, Eagan, Empire Township, Farmington, Hastings, Inver Grove Heights, Lakeville, Mendota Heights, Rosemount, South St. Paul, Sunfish Lake and West St. Paul.

Home Buyer Education Classes

REQUIRED: Visit our Home Buyer Education Class Signup page

Down Payment Assistance Amounts

Up to $18,000 in a monthly payment due assistance loan. No include limit.

A deferred payment option, zero interest, no payments due available based on household size and family income. Loan is repaid when you sell, pay off main loan, or refinance. You can always pre-pay the loan at any time.  Please call (651) 552-3681 for current income limits.

Down payment and closing cost assistance funds are reserved on a first-come, first-serve basis. Funds may only be reserved AFTER your bought a home and underwriting has begun.