First Time Homebuyer Program

In the market for your first home? Whether you are buying an existing home or building a new one, the First Time Homebuyer Program available from the Dakota County Community Development Agency (CDA) provides a financial resource to make your purchase successful.

About the program:
The First Time Homebuyer Program from CDA provides homebuyers with financing for a first mortgage through participating lenders, such as Cornerstone Mortgage Company in Burnsville, at a low, fixed interest rate. The initial interest rate for the CDA First Time Homebuyer Program is 4.99%. The rate can fluctuate, so you’ll want to check with Carrie Guarrero at Cornerstone Mortgage Company for the most current interest rate for this program.
Carrie has all the necessary application materials to qualify homebuyers for the Dakota County CDA First Time Homebuyer Loan.
The First Time Homebuyer Program is available for existing properties throughout Dakota County and new construction in:
Apple Valley
Burnsville
Eagan
Empire Township
Farmington
Hastings
Inver Grove Heights
Lakeville
Mendota Heights
Rosemount
South St Paul
Sunfish Lake
West St Paul

Program Eligibility:
Homebuyers must be first time homeowners or someone who has not owned their primary residence in the last 3 years.
Income limits for 1 0r 2 person households is $83,900.
Income limits for households with 3 or more persons is $92,290.
Maximum purchase price is $267,683 for single family homes, townhomes or condos.
Properties must be located in Dakota County.
Homebuyers must occupy the home as their primary place of residence after purchase.
Buyers must have a minimum credit score of 620.

Eligible Financing:
The First Time Homebuyer Program may only be used with a 30 year amortizing fixed-rate FHA or VA mortgage loan.
Homebuyers may also use the one-time $8,000 federal tax credit in addition to this Dakota County CDA program, if they meet the requirements and deadlines for the federal tax credit.
Fees and Requirements:
An application fee of $225 is paid at closing
Home Stretch Homebuyer Education class certificate required prior to loan closing.

Downpayment and Closing Cost Assistance

Homebuyers accessing the Dakota County CDA First Time Homebuyer Program can also apply for downpayment and closing cost assistance loans of up to $10,000, depending on household income.

Loan Terms
Zero percent interest
No monthly payments
Loan must be repaid when the primary mortgage is paid off, the home is no longer the primary residence, or when the home is sold or refinanced.
Borrower must contribute a minimum of $750 of their own funds toward the purchase of the home.
Home must meet the minimum housing standards for FHA or VA mortgages.

Maximum Loan Amounts and Income Limits:
10% of the first mortgage amount up to $10,000 for households with the incomes at or below 50% of the area median income.
5% of the first mortgage amount up to the $7,500 for households with incomes between 51% and 80% of the area median income.
2.5% of the base mortgage amount for households with incomes between 81% and the First Time Homebuyer Program income limits.
How to Apply:
Interested homebuyers must work with a participating mortgage lender to determine eligibility for the First Time Homebuyer Program and Downpayment & Closing Cost Assistance. You can contact Carrie Guarrero with Cornerstone Mortgage Company in Burnsville, an approved participating lender by clicking here or to request preapproval, fill out form here.

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