Dakota County is starting a new first time homebuyer program. It is a fixed, low interest mortgage financing loan program along with a Mortgage Credit Certificate and up to $10,000 in down payment and closing cost assistance. You must work with participating mortgage lenders to qualify for the program.
The mortgage program is either FHA or VA and the interest rate is 3.25%.
Homebuyers must be first time homebuyers or someone that has not owned a home in the last three years. The property must be located in Dakota County. Homebuyers must occupy the home as their primary residence after closing.
There are income limits in the program. For a 1 or 2 person household, the income limit is $82,300. For 3 or more person households, the income limit is $90,530. The income is based on household income, not just the person qualifying for the mortgage.
The maximum purchase price is $276,683. You can buy single family homes, condos or towhomes.
In addition to the low interest first mortgage financing, you can also take advantage of a mortgage credit certficate that provides a federal income tax credit.
Down payment assistance is available up to $10,000. The amount of assistance will depend on household income. You can qualify for 10% of the first mortgage amount up to $10,000 for households with incomes at or below 50% of the area median income. For example, if your income is under $28,850, you can get up to $10,000. You can get up to$7500 or 5% of the first mortgage amount if you income is between 51% and 80% of the area median income. For income between 81% and 100% of the program income limits, you can qualify for up to 2.5% of the first mortgage amount. Another example would be a household of 4 with an income of $64,400 could qualify for up to 5% of the first mortgage amount. So if your new mortgage is $200, 000, you would be able to get $7500 as that is the max for the income amount.
All homebuyers applying for a first time homebuyer loan need to complete an approved homebuyer education course. It needs to be either a Framework or Home Stretch class and has to be completed before you can close on your new home.
If this program is something that can help you buy a home, contact your loan officer and see if you can qualify for the program!
Leslie Vanderwerf, NMLS ID#335509, American Mortgage and Equity Consultants – Email – Website
