There are several different first time homebuyer programs available. If you are buying a home and not sure where to start, ask your loan officer. Most first time homebuyers will use FHA financing, but there are other options available. If you have 3-5% of your own money and good credit, you may want to use conventional financing. For those buying in rural areas, look at USDA's rural development program, it is zero down! VA mortgages are also good options if you are eligible.
For those that need down payment assistance, there are some options available. I just had a buyer find a program in Minneapolis that gave her $10,000 in down payment assistance and if they live in the home for 5 years, they do not have to pay it back!
Minnesota Housing has programs for first time homebuyers and move up buyers. Depending on your income, there are different levels of down payment assistance available also. This program is available statewide.
Dakota County has a first time homebuyer program available that also offers down payment assistance. The assistance will depend on your income. The main program is a Mortgage Credit Certificate that offers a income tax credit.
In Minneapolis, there are different programs depending on where you are buying. The Central Homebuyer Assistance loan will give you between $5000 and $10,000 in assistance if you are buying in that neighborhood. You do not have to be a first time homebuyer to use this assistance. There are other programs in different neighborhoods that will offer between $2000-$5000 in assistance. Most require you to owner occupy the property.
In Woodbury, there is a program that offers up to $25,000 in down payment assistance for first time homebuyers.
Brooklyn Center has a program called ReNew Buyer Incentive Program. It offers up to $10,000 in assistance and if you live in the home for at least five years, the loan is forgiven.
If you are looking for a new home, it is worth asking if there is anything special in the area you are looking. My buyer used the Central Homebuyer program and was able to get $10,000 in assistance. They plan to live in the home for at least 5 years, so they will not have to pay the $10,000 back! What a wonderful way to help finance your home!
Leslie Vanderwerf, NMLS ID#335509, American Mortgage & Equity Consultants – Email – Website
