Minneapolis Down Payment Assistance

Minneapolis Down Payment Assistance

Own Your own Home!

The City of Minneapolis, in partnership with Minnesota Housing,  the Minnesota Homeownership Center, and Mortgage lenders like us here at Mortgages Unlimited are getting together to provide access to down payment assistance, quality, affordable mortgages and free, non-biased housing experts that can help you become a successful home owner!

Maybe you’ve thought homeownership wasn’t possible, or you didn’t know where to start. Maybe you thought your credit wasn’t good enough or you haven’t saved enough for a down payment. We can help!

Down Payment Assistance – Homeownership Opportunity Minneapolis

The City of Minneapolis wants to make affordable homeownership a reality for you. The City is providing up to $7,500 to qualified buyers to cover down payment and closing costs when purchasing a home anywhere within Minneapolis city limits. To qualify for this program, you must meet the following income eligibility requirements:

  • Homebuyers with household income up to 115% of the area median income (currently $99,500) are eligible for up to $5,000
  • Homebuyers with household income up to 80% of the area median income (currently $69,280) are eligible for up to $7,500.

Quality, Affordable Mortgages

Minnesota Housing, the State’s Housing Finance Agency, offers mortgage loans for first-time homebuyers with affordable interest rates. Our Minnesota Housing loans work seamlessly with down payment assistance products like those offered by the City of Minneapolis.

How To Get Started

Your first step is to apply for the mortgage loan itself. Your Mortgages Unlimited Loan Officer will review the application, your credit, etc.  They will discuss with you if you qualify, how much house you can afford, what the payments might look like, and what assistance you may qualify to receive. Click HERE to apply online (easiest) or call (651) 552-3681.

If that all looks good, you will need to submit standard loan documentation, which includes photo id, last two pay stubs, last two bank statements, and the last three years of W2’s and federal tax returns.

If that still looks good, you will be issued a Pre-Approval Letter, put in touch with a high quality Real estate Agent agent, and sent out to find your dream home.

In between the initial approval and closing on your new home, you will need to take the homebuyer education class listed next.

You do not have to have perfect credit, but you can NOT have BAD credit. All applicants must have a middle credit score of at least 640.  Next, while you are receiving assistance, you can’t buy a home with no money.  You must have at least $1,000 of your own money to put into buying the home.

Homebuyer Education

If you are a first time home buyer, this program from the City of Minneapolis, just like all first time home buyer programs requires all first time homebuyers to attend home buyer education.

There are two options:  Attend a physical 8-hour class (Home Stretch) or take an online class (Framework Classes). Click the links below for more information of the required training.

Sign up for HOME STRETCH: In-person workshop  Your first time homebuyer class can be taken in person in multiple locations throughout the state. The cost of this class is typically $25.

Sign up for FRAMEWORK: Online Education An online homebuyer education class can be started and stopped, and finished at your leisure. The cost of this training is $75. Most people take the online training.

When Your Class Is Completed: Print your Certificate of Completion and give  a copy to your Loan Officer

More Information

Contact:

Joe Metzler, Senior Loan Officer. NMLS 274132

(651) 552-3681

www.MNHomesAndLoans.com

 


Mortgage scams coming to an end?

After year and years of abuse, it appears a big area of real estate transaction abuse may be finally coming to and end. What is that you say?  Something you probably experienced, but didn’t realize, which is known as a Marketing Service Agreement, or MSA.

MSA are agreements between various companies, more often than not, companies owned by the same people, to steer you into using the services of the other company.

For example, you buy your home using a Real Estate Agent from ABC Realty, who talks you into getting your mortgage loan from their affiliated company ABC Mortgage. Then they get you to close your home loan at their affiliated Title Company, ABC Title. Some, even go as far as even trying to get you to get your homeowners insurance from their affiliated company!  cfpb_logo

Another great example is in new construction, where the builder uses fake incentives (like free appliances) if your use the mortgage company and title company they own.

These MSA have become prevalent in the market, but have started to fall out of favor with many companies since the CFPB (Consumer Financial Protection Bureau) started going after these service agreements over their legality. Numerous companies have been slapped with large fines for their practices, so many others, seeing the writing on the wall, and just getting out of MSA’s all together.

Essentially these agreements require one company to be obligated to recommend the other, even when they know there is a better alternative for the client.

Almost always, it comes down to money. If the client believes they are required to use the company and they don’t shop, or are not allowed to shop, what sort of deal do you think the related provider is providing?  incentive2That’s correct, rare is their offering the best deal, and many times, the consumer is paying a significant premium for the related company services. Because the related provider costs more, if allowed to shop, it would usually put their own overpriced companies at a competitive disadvantage.  Therefore many companies employ tactics to scare or otherwise discourage clients from shopping.  The aforementioned builder incentive is classic. People, the builder is NOT giving away anything. The appliance allowance, or finished basement upgrade is already built into the price of the house. They only “offer” that as a great incentive for you to also use their MSA partner.

While MSA’s are not currently illegal, the CFPB has strongly stated that if you are going to be making a referral, it better be because it is the best deal from the client, and not the best deal for them.

The bottom line for a home buyer is that you should always shop for the other services.  Almost without fail, because of the nature of Marketing Service Agreements, you’ll usually get a better deal somewhere else.