MN Housing Programs
It’s no secret that First Time Home Buyers have a good number of programs and loan options available in Minnesota. If you’re looking for down payment assistance or closing cost help there are a couple programs you could take advantage of through the Minnesota Housing Finance Agency (MHFA).
The first is called the “Minnesota Mortgage Program” (MMP) which can provide low interest-rate loans along with a no-interest loan for closing costs and/or down payment on the house. There are certain requirements for this program (like all programs), but the good news is any one of the following can be true to qualify you:
- Household of “color”
- Single head of household (with children)
- Households earning less than 60% of the area’s Median Income
- Households with a member who has a disability
- Purchase in a low-income census tract
- Buying a Foreclosed (bank-owned) property
Some of those may not be so clear to the average new home buyer, which is why it’s a good idea to work with a real estate agent and loan officer who can help educate you on the home buying process and terms you’ll need to know.
Another mortgage program that could be useful to you is the “Community Activity Set-Aside” (CASA) Program. This is a great home loan for low to moderate income 1st time home buyers in MN. It’s offered through local lenders who help target emerging markets, single-headed households, foreclosed properties, and workforce housing. The CASA program offers low-fixed-interest-rate loans and also the possibility of interest-free loans for down payment and closing costs.
Under both of these programs offered through the MHFA, a certain amount of requirements need to apply:
- Buyers must attend an 8-hour Home Stretch Class before closing
- Buyers must contribute $1,000 of their own money to the transaction (rest can be a “gift”)
- Buyers on the loan and PA must have minimum of 620 Credit Score
- Post-close liquid asset limit of six months PITI or $5,000 – whichever is greater
- Down payment assistance loans are due when the buyer sells, moves out of the property, or refinances.
There are always changes occurring with these programs, so please make sure you contact a knowledgeable loan officer and Realtor before thinking you can go out and obtain these things on your own. Needless to say, there’s a lot of help available to buyers looking to take advantage of the lower prices in Minnesota. Best of Luck!
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Great info on all the programs out there. Thanks for the complete list.