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

    Down Payment Assistance Program Guidelines | First Time 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 March 26, 2018. 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

    $92,400

     

     

     

     

    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 3/26/2018)

      • 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 Balance of State
    1- 2 Person $65,000 $65,000 $58,000
    3 Person $73,000 $73,000 $65,000
    4 Person $81,000 $81,000 $72,000
    5 Person $98,000 $98,000 $78,000
    6 Person $94,000 $94,000 $84,000
    7+ Person $101,000 $101,000 $90,000

    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 $15,000 or 5% of the purchase price or loan amount
    • 10-year loans
    • Minimum 640 credit score, but requirement can be higher depending on underlying 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:

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