Minnesota Housing has had a first time homebuyer program for a long time. In September there will be several updates. Over the last few months with all the foreclosures and the problems in the financial markets, it has been hard for MHFA to issue bonds. They have had to tighten up standards and eliminated some programs.
In September, they are going to start using a mortgage backed securities program that will allow them to have better interest rates and open up some programs. Over the last few months the only conventional loans they were allowing were those with 20% down, now you will be able to do insured conventional loans. So depending on mortgage insurance companies, you will be able to do between 0 and 5% down – most common for now will be 5% down. FHA will also still be available.
CASA is still available to those that qualify. Within CASA, the home help program is there offering between $5000 and $14,999 in down payment assistance. Home Help's down payment assistance allows 70% of the down payment assistance to be foregiven if you live inthe home for at least 5 years.
The main program (MMP) will still have the entry cost assistance of $3000. You will need a credit score of 620 to qualify for that money.
Remember that you can not have any personal property listed on the purchase agreement with these programs. There is more information available at their website or you can call me. The website is www.mnhousing.gov.
