Need Money to Buy Your First Home?

I’m going to say it again, because its important to hear. THERE IS STILL MONEY AVAILABLE TO HELP YOU GET INTO YOUR FIRST HOME! I can’t stress this enough, there are programs available to help you get down payment and closing cost assistance. Actually, lots of programs! Lets take a look at the information for first time homebuyers looking to purchase real estate in Dakota County:

First Time Homebuyer Program

Whether you are buying an existing home or building a new one, the Dakota County CDA’s First Time Homebuyer Program provides a financial resource to make your purchase successful.

Current interest rate: 4.99%

Program Eligibility

• Must be first time homeowners meaning homebuyer has not owned their primary residence in the last three years.
• Available for properties include existing single family homes, townhomes, condominiums or duplexes in Dakota County.
• Available for new construction in Apple Valley, Burnsville, Eagan, Empire Township, Farmington, Hastings, Inver Grove Heights, Lakeville, Mendota Heights, Rosemount, South St. Paul, Sunfish Lake and West St. Paul.
• Homebuyers must occupy the home as their primary residence after purchase.
• Minimum credit score of 620.

Income Limits

• Max income to qualify for 1 or 2 person households: $84,000
• Max income to qualify for 3 or more person households: $92,400

Maximum Purchase Prices

• $276,683 for single family homes, townhomes or condominiums
• $389,205 for duplexes (not eligible for additional Downpayment Assistance)

Eligible Financing

• The First Time Homebuyer Program may only be used with 30-year amortizing fixed-rate FHA or VA mortgage loans.

Fees & Requirements

• An application fee of $225 is paid at closing. Mortgage lenders may also charge a $150 transfer fee as part of closing costs.
• Home Stretch Homebuyer Education certificate required prior to loan closing.

To apply, contact Carrie Guarrero. Carrie has all the necessary paperwork to qualify homebuyers for the First Time Homebuyer Program and Downpayment Assistance.

Questions? Call 952.808.0042.

Downpayment & Closing Cost Assistance
Homebuyers accessing the Dakota County CDA First Time Homebuyer Program can also apply for downpayment and closing cost assistance loans up 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 & Income Limits

• 10% of the first mortgage amount up to $10,000 for households with incomes at or below 50% of the area median income.
• 5% of the first mortgage amount up to $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.

Questions? Call 952.808.0042

The most important piece to remember here is that if you are a first time homebuyer and you are looking for your first home in Dakota County, whether that is Burnsville, Lakeville, Eagan, Apple Valley or anywhere else in Dakota County, you need to see if you qualify for the down payment and closing cost assistance. Don’t forget that the low interest rate mortgage is available in conjunction with the up to $10,000 down payment and closing cost assistance funds! To see if you qualify, get started by clicking here.

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