There are two new down payment programs in Minnesota for first generation homebuyers. A first generation homebuyer is described as someone that has not owned a home and neither have their parents. There are two programs available – one with MN Housing and the other is through the First Community Down Payment Assistance Fund.
The programs are similar in qualifications. MN Housing’s program will allow you to get up to $35,000 in assistance. It is a 20 year deferred, interest free and forgivable loan. Half the loan is eligible to be forgiven after ten years, the rest after twenty. To be eligible for forgiveness, you must live in the home through the forgiveness period and meet all the terms of the agreement. You must use the Start Up program with MN Housing to be eligible for the First Generation program. There are income limits and in the Twin Cities Metro area, a household of three or more the income limit is $142,800.
The First Generation Homebuyer program through the Community Down Payment Assistance Fund is separate from MN Housing. You need a mortgage approval from a lender. You can get up to $32,000 in assistance. This program is a zero interest loan that is forgiven over five years (20% forgiven each year) as long as the homebuyer lives in the home as their primary residence. The income limit for this program is $124,200 for buyers in the 11 county Twin Cities metro area.
Both programs require a first time homebuyer class.
Both these programs are funded by the State of Minnesota and the goal of the program is to help more first-generation homebuyers gain access to homeownership. If you are interested in learning more, please contact me. Maybe you don’t qualify as a first generation homebuyer, but you may know someone that does. There are also other down payment assistance programs for those that are buying their first home, but are not a first generation homebuyer.
Leslie Vanderwerf, NMLS ID#335509, CrossCountry Mortgage LLC, An Equal Housing Lender, NMLS#3029 – Email – Website
