First time homebuyer programs

Being a first time homebuyer has some perks! There are some programs that will allow you get down payment assistance, lower mortgage insurance and sometimes grants that do not need to be paid back!

There are many programs available to first time homebuyers, the trick is to find them! The standard ones are Fannie Mae’s Home Ready, Freddie Mac’s Home Possible and even FHA is considered a first time home buyer program. None of these are limited to first time homebuyers but if your income fits the program for Home Ready and Home Possible, you may get a slightly lower interest rate and mortgage insurance. The income varies based on the county you live in.

In Minnesota we also have a first time homebuyer program that allows up to $10,000 in deferred down payment assistance if your income meets the guidelines. If not, there is a monthly payment program with up to $15,000 in assistance. This program requires you to pay back the assistance with interest over the first 10 years. You can also get reduced mortgage insurance with this program You need to have at least $1000 into the transaction.

In Dakota county, you can also get down payment assistance that is deferred until you sell the home or pay off your loan. They also offer a MCC program (Mortgage Credit Certificate), this can help you on your income taxes.

Scott county has a Homebuyer Club and if you attend the workshop, you can qualify for up to a $4000 grant that does not need to be paid back.

Woodbury, Eden Prairie and Edina all have city programs that can help you with down payment assistance.

Most programs will have income requirements and also require a first time homebuyer class. You can attend a class or you can complete the class online with Fannie Mae’s Framework’s class. Most programs also require that you have at least $1000 into the transaction.

So have you been thinking about buying a home but couldn’t figure out where you were going to get your down payment? This might help you to buy sooner than later!! Down payment assistance can be a great way to help you get into that home you have been dreaming about! Talk to your lender and see what you might qualify for!! If your lender doesn’t offer first time homebuyer programs, give me a call!!

Leslie Vanderwerf,  NMLS ID#335509, Everett Financial Inc, dba Supreme Lending, An Equal Housing Lender, NMLS#2129 – Email – Website

Written By

Currently a Senior Loan Officer at Cross Country Mortgage LLC, it's hard to believe I have been in the mortgage business for more than 25 years and have worked with Sharlene since 2000! I love sharing mortgage insights here each week and helping people finance their homes. Listening helps me find the right program for you!

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