Many people are talking about buying a home now with interest rates as low as they are. However many first time homebuyers are concerned about a lack of financial education and considerate it a barrier to homeownership. There are many potential homebuyers that do not understand the homebuying process and so aren’t comfortable with the thought of buying. On top of that, many believe that they will need assistance to get a down payment. There are many that do not realize there are first time homebuyer programs out there that could help. There are programs at state, regional and local levels that can help with a down payment. Many programs do not require that you are first time homebuyer but many are not aware of that. There are also many that think that because they owned a home in the past, they will not qualify for any type of assistance.
In Minnesota, the main program available around the state is MN Housing. They offer down payment assistance to first time homebuyers and move up buyers. You can get anywhere from $10,000 to $15,000 in assistance depending on the program and your income. This program can definitely make a difference for someone looking to buy a home!
In the Minneapolis/St Paul metro area, there are many local programs. Dakota County has a first time homebuyer program for those buying in the county. Scott County has a grant program for those buying in Scott County. There are programs in Eden Prairie, Edina, Woodbury and St Paul. There may be programs in certain areas of Minneapolis.
Another option for those buying outside the metro area is USDA. This is a zero down program that will allow you to buy without a down payment -and you can ask the seller for help with closing costs.
The bottom line is there are many programs available but it’s important to get the financial education to help you make the best choice for you. Not all lenders offer these programs and many loan officers are not aware of them. When you are looking to buy, ask your loan officer about assistance options. They may or may not be right for you but if you aren’t aware of the programs, you can’t made that decision. There are also many first time homebuyer education programs out there. MN Housing offers a program called Home Stretch. This is available in different areas – at this time mostly over a zoom meeting due to Covid. There are also online education programs. Fannie Mae has a program called Frameworks. You can find this program free online. This will help you learn about the home buying process and what you may qualify for.
Talk to your loan officer, call me or ask your realtor about programs. There are many options out there – you just need to find the one that is right for you!
Leslie Vanderwerf, NMLS ID#335509, Cross Country Mortgage LLC, An Equal Housing Lender, NMLS#3029 – Email – Website
