Planning of purchasing a home in Minnesota? Are you looking for a home in the Minneapolis, Saint Paul or Dakota County area? Are you a first-time buyer? Then you could be eligible for various Minnesota First Time Home Buyer assistance programs.
The vital thing to remember for someone to qualify for the program is that you must be a first time home buyer in Minnesota. This means that you must not have owned a house in the past three years. This can be done by getting documents for your tax returns for the last three years.
Minnesota Housing – Start Up
This program for first time home buyers is designed to help offer inexpensive interest rates and aid home buyers better manage down payments and closing charges. First time home buyers that are qualified must have a minimum 660 credit score; they must also to get a mortgage from a lender and must meet definite income limits. Those who are qualified must also participate in homebuyer education course.
Minnesota Housing – Step Up
This is a loan can be used for home purchase or to help homeowners refinance. The loan is meant to promote affordable interest rates in the state of Minnesota. The monthly payment portion of this Minnesota Housing program is available to help buyers afford closing costs and the down payment of a home purchase. The loan allows borrowers to reduce or eliminate mortgage insurance costs. Qualified borrowers need to have a credit score of at least 640, they must meet program income limits and in some cases, borrowers must attend homebuyer education courses.
Deferred Payment Loan
This loan type is designed for first time home buyers to aid them with home ownership cost. Qualified home buyers can choose from two loan options, which is deferred payment loan and the plus loan. They must also have a credit score of 640 for them to qualify and they must participate in an education course for home buyers. The loan term is equivalent to the first mortgage rate and is at 0% interest. The loan can be repaid after the selling the property, the loan is refinanced or it is not the property of the homeowners.
Minnesota Housing – Monthly Payment Loan
This program is aimed at helping homebuyers in Minnesota to avail of the cost of buying a house. Minnesota Housing offers monthly payment aid with $5,000 or 5% of the purchase cost, whichever is greater, which will be allocated to the down payment and closing cost. Qualified home buyers must also acquire a Minnesota Housing first mortgage loan, which can be an MCC, Start Up or Step Up. The loan has a 10-year term and comes with a monthly interest rate equivalent to the first mortgage rate. Borrowers must have a credit score of at least 640 and must meet income limits of the program. Another requirement is for home buyers to participate in an education course.
Minnesota Housing – Mortgage Credit Certificate
This program is made to aid homeowners in Minnesota so they can manage to pay their mortgages. This Mortgage Credit Certificate lets homeowners claim 35% of interest from their mortgage that they pay each year as a federal income tax credit. This program is aimed at first-time home buyers. The Mortgage Credit Certificate has certain qualifications to follow such as qualifying for a mortgage on a house, plan to have the house as their main home, hold federal income tax liability and meet the program’s income limits.
Contact Minnesota Down Payment Assistance if you are a first time home buyer.