First time home buyer down payment assistance programs continue to assist many first time home buyers in Minnesota with their first home purchases each and every month. There are a number of first time home buyer programs available throughout the state of Minnesota to help bridge the gap in necessary down payment by providing down payment assistance to qualifying first time home buyers.
Three major programs that we offer through our lender partnership with Minnesota Housing are:
- MMP – Minnesota Mortgage Program – This is a reduced interest rate program that offers up to $3,000 in down payment assistance and closing cost assistance in a no interest, no payment loan. The reduced interest rate program is available throughout the entire state; however, the down payment assistance portion is available only in spotlight areas throughout the state of Minnesota.
- CASA – Community Activity Set Aside – This is a market interest rate program that offers up to $4500 in down payment assistance or closing costs assistance in a no interest, no payment loan. It is available throughout the entire state of Minnesota.
- HOME HELP – This is an assistance program coupled with CASA that allows for up to $10,000 in down payment assistance and closing cost assistance and 70% of the balance is forgiven if you owner-occupy the property for 6 years.
- NEW HFA Preferred Risk Sharing Program – This program doesn’t offer any down payment assistance or closing cost assistance, but it does offer a minimum down payment and No Mortgage Insurance on a Conventional loan.
There are three main qualifying factors for eligibility for these programs:
1) You must be a first time home buyer, purchasing in Minnesota. A first time home buyer is defined as someone who has not owned a home in the prior 3-year period of time. Yes, if you previously owned a home, but haven’t owned one in the past 3 years, you could be eligible for these programs.
2) You must fall under the income guidelines associated with the particular program. Income limits are generous for the first time home buyer with limits up to *$83,900 for 1-4 family households. Households with greater than 4 family members will carry higher income limits.
3) You must be purchasing a home for less than *$298,125. Most first time home buyers are buying well below this range and aren’t concerned about exceeding these limits.
*These limits are for First Time Home Buyers in the Twin City Metro Area. If you are looking to purchase outside the 11-County Twin City Metro Area, limted will vary. Please contact Carrie Guarrero for additional information and limits for the area you are searching.
If you’re interested in learning more about these Minnesota Housing Finance Agency loan programs, or other first time home buyer programs throughout the state of Minnesota, Carrie Guarrero is a great resource for first time home buyers.
Carrie Guarrero has been a long-time top producer for Minnesota Housing Finance Agency and an educator of first time home buyers. She has a desire to making sure that every first time home buyer in Minnesota is thoroughly educated about the home buying and mortgage process and assisted in selecting the right loan program for their personal situation. You can contact Carrie Guarrero here or call her at 952-808-2810 to start the process or, if you’re ready to start the pre-qualification process now, you can complete her online pre-qualification worksheet and she will be in touch about the next steps.
Carrie also hosts a monthly Minnesota First Time Home Buyer Class in her Burnsville office location along with an expert real estate partner, Steve Howe. Together, they cover all of the basic elements of the home buying process for the Minnesota first time home buyer. See what others have had to say in this First Time Home Buyer Class Video.
The next First Time Home Buyer Class is scheduled for July 19th from 6:30-8PM @ Cornerstone Mortgage Company located at 436 Gateway Blvd., Burnsville, MN 55337. You can register for the Minnesota First Time Home Buyer Class online or call 952-808-0042 to register.
As a first time home buyer in Minnesota, you need to explore your options. Not all lenders offer these or other first time home buyer programs. Do your research and make sure that you’re getting the right program for you!
If you’ve found this post helpful – don’t keep it a secret – pass it on to your friends and family. Carrie is committed to educating Minnesota First Time Home Buyers about mortgage financing in our state. Sign up for our RSS feed to stay updated on things you should know!
If you enjoyed this article, please consider sharing it!
