Dakota County has a new bond program that also offers down payment assistance. The interest rate is 4.99% and there is up to $10,000 available in down payment assistance. The property must be in Dakota County, the maximum purchase price is $276,683 and the maximum household income is $83,900 for 1-2 person households and $92,290 for 3+ person households. The buyer must be a first time homebuyer and the property does not have to be a foreclosure. The down payment assistance is determined by your household income and is a zero interest deferred payment mortgage. The down payment assistance must be paid back when the house is sold or refinanced.
Hennepin County has money available through their Neighborhood Stabilization Program. This program is available in specific areas of Brooklyn Park, Brooklyn Center, New Hope, Crystal, Robbinsdale and Champlin. The down payment assistance is for foreclosed vacant homes and can be used for down payment and closing costs. The minimum amount is $1000, up to $10,000 is available and for those under 80% of the median income, you can qualify for up to an additional $20,000. The loan is a zero percent interest rate that is also forgiven if you live in the house long enough. If you get up to $14,999 and live in the home for 5 years, you do not have to pay any of it back! You are required to have 50% of the required down payment into the transaction and must contribute a minimum of $1o00.
Woodbury has down payment assistance available for foreclosed homes. You must be a first time homebuyer and buying a foreclosed home. The maximum purchase price is $256,500 and household income may not exceed 80% of the median income. The maximum down payment assistance available is $25,000 and is a zero percent interest rate deferred loan that is paid back when the property is sold or paid off.
Plymouth has a program for first time homebuyers to receive up to $25,000 in down payment assistance. It is a zero percent deferred payment loan that is paid back when the home is sold or paid off. You must contribute at least 50% of the required down payment and the assistance can be used for the remaining down payment and closing costs, plus mortgage principal reduction.
Minnesota has a program that is statewide for first time homebuyers with down payment assistance available. The interest rate varies and down payment assistance is up to $5000. The Home Help program through CASA offers additional down payment assistance.
City Living is a program in Minneapolis and St Paul that offers down payment assistance. The down payment assistance is up to 2% of the mortgage amount.
These are just a few of the programs that are available to homebuyers. Most require that you are a first time homebuyer and several require that you purchase a foreclosed home. Most also required that you attend a Home Stretch first time homebuyer class. Some of the loan are forgiven after you live in the home for a certain amount of time and some must be paid back.
Don't forget that if you write a purchase agreement by April 30th and close by June 30th, you can qualify for the Federal tax stimulus of up to $8000!! I recently had a buyer use the Hennepin County NSP program, he received $14,000 in down payment assistance plus he is getting the $8000 tax credit – if he stays in the home for 5 years, he doesn't have to pay any of it back! That's $22,000 that he got for buying a home!!
