There are several different down payment assistance programs available depending on where you are buying a home. Most programs require you to be a first time homebuyer and be under specific income guidelines. Here are some programs that are available in Minnesota:
MN Housing – this program will work through the state. There are different income guidelines within the program and the amount of down payment assistance can vary.
Dakota County Bond Money – this program is available for first time homebuyers in Dakota County, the maximum down payment assistance is $10,000 (up to 10% of the mortgage amount) depending on income.
Minneapolis and St Paul City Living – this is for buyers within the city limits of Minneapolis or St Paul
Brooklyn Center Renew Buyer Incentive Program – this program is for buyers in Brooklyn Center and the down payment assistance may be forgiven if you live in the home long enough.
Come Home to Edina – Up to $60,000 in assistance, interest is charged on the amount of assistance.
Woodbury First Time Homebuyer Program – Up to $25,000 in assistance for those buying in the city of Woodbury
Plymouth First Time Homebuyer Program – Up to $25,000 in assistance for those buying in the city of Plymouth. Can be used for 50% of the down payment, 100% of closing costs, must be paid back when you sell the home or pay the first mortgage in full.
Minnetonka First Time Homebuyer Program – Up to $10,000 in assistance for those buying in the city of Minnetonka, money is also available for home repairs.
Northfield First Time Homebuyer Program – Up to $5000 in assistance for those meeting income guidelines in Northfield.
There may be more programs available in different areas. If you are looking for a new home and are a first time homebuyer, you may want to look into these options. Some of the programs require you to pay back the assistance when you sell the home, some of them will forgive the assistance if you live there long enough. Most require that you have not owned a home in the last three years. Some of the assistance programs do not charge interest on the money, some will. Most of the programs do not require payments until you sell the home. Some of the programs may have a recapture tax if you sell the home within a specific number of years – for example both MN housing and Dakota County require recapture tax if you sell the home within 9 years, sell for a profit and your income is over specific guidelines.
If you are interested in any of the programs, ask your loan officer if they can get you more information. You may also be able to find information online or at the city websites. Feel free to email me for more information. Your real estate agent may have more information also.
Leslie Vanderwerf, NMLS ID#335509, Advisors Mortgage - Email – Website
