3. First Time Home Buyers Programs
YOU CAN OWN A HOME
The purchase of a home is often the largest investment a family makes in their life time, and I understand that much thought and emotion goes into your decision. Because of this I have come to recognize the need of educating you about this complicated and often confusing process involved when buying a home, and meet the needs for decent, safe, and affordable homes.
Did you know you can own your home for about the same money as an apartment security deposit?
I am exited to present the Minnesota First-Time Home Buyer Guide to inform you of many wonderful programs available to you. You will find the following terms used often in this material:
First-Time Home Buyer: A First-Time Home Buyer is someone who has not owned a home or held ownership interest in a property in the past three years. Most of the programs in this guide are available only to First-Time Home Buyers. A few are available to Home Buyers wish to sell and purchase a different home or want to do a rate refinance. All programs require that the Home Buyers owner-occupy the properties.
Household Gross Annual Income: This income is the sum total of the income earned by all people who will live in the household, whether or not they are on the loan application. The amount of allowable income varies from program to program.
Eligible Properties: Some loan programs allow you to purchase only single-family homes. Others permit you to purchase multi-family properties.
Purchase Price Limits: Most of the programs in this guide have a maximum sales price or loan amount for the property you purchase. This amount varies from program to program.
Property Location: The name of the program often reveals the area in which your home must be purchase if you wish to use a particular program.
First Mortgage, Second Mortgage, or Grant: Some of the programs in this guide are first mortgage loan programs. Others are second mortgages or grants that must be used in combination with an approved first mortgage product. Some of the second mortgages have a simple interest rate; others are interest-free; some may be grants that are not repaid or are forgiven after a period of time.
First-Time Home Buyer Education: Most of the programs in this guide require that you attend the home stretch workshop prior to closing your loan. The number of people in your household that must attend varies from program to program. This workshop will give you invaluable information and much confidence on your journey. Assessing whether or not home ownership is your best housing option, Understanding the home buying process and how to be sure that no one takes advantage of you, estimating the home price you can afford, and knowing how to qualify for a mortgage that best fits your situation.
Get up to $23,000 in Down Payment and Closing Cost Assistance.
Contact Me Today and Have a Licensed Expert on your side!
Phone: (651)783.2469 or follow the links to find out more about buying or selling a home.
FIRST MORTGAGE PROGRAMS
CASA Program through Minnesota Housing
Minnesota Housing offers the Community Activity Set Aside (CASA) program for the First-Time Home Buyers who plan to purchase a home anywhere in the State of Minnesota. This first mortgage has a below-market, fix interest rate on a 30-year or a 40-year term. Optional down payment assistance and monthly payment assistance are available as an interest-free, deferred second mortgage that may be used with the CASA first mortgage.
CITYLIVING Program of Minneapolis
CityLiving is a First-Time Home Buyer program sponsored by the city of Minneapolis. This program offers a 30-year fixed mortgage and optional down payment assistance grant of 3%.
Two options are available to the borrower with this program:
Option 1: A below-market rate on 30-year fixed mortgage for those choosing not to use the down payment assistance grant.
Option 2: A slightly higher below-market interest rate on a 30-year fixed mortgage, plus a down payment assistance grant equal to 3% of the mortgage amount.
CITYLIVING Program of Saint Paul
CityLiving is a First-Time Home Buyer program sponsored by the city of St. Paul. The loan is a 30-year fixed mortgage offered at two interest rates: a lower rate for borrowers who do not need assistance and a slightly higher interest rate for those who receive an entry assistance grant of 3%.
Three options are available to the borrower with this program:
Option 1: A below-market rate on 30-year fixed mortgage.
Option 2: A slightly below-market interest rate on a 30-year fixed mortgage, along with an entry cost grant equal to 3% of the mortgage amount.
Option 3: A slightly higher below-market interest rate on a 30-year fixed mortgage, along with an entry cost grant equal to 3% of the mortgage amount, and three special assistance loans.
Dakota County Mortgage Revenue Bond Program
The Dakota County Community Development Agency (DCCDA), in partnership with Countrywide Home Loans, offers a mortgage bond loan program designed for low to middle-income First-Time Home Buyers purchasing a property in Dakota County. The program offers a below-market, 30-year fixed first mortgage and grant that may be used for the down payment or closing costs. This program is financed using tax-exempt bonds.
Two options are available to the borrower with this program:
Option 1: A below-market rate on 30-year fixed first mortgage.
Option 2: A slightly higher below-market interest rate on a 30-year fixed first mortgage in exchange for a 4% grant, which can be used for down payment or closing cost and which deos not have to be repaid.
Federal Housing Administration (FHA) Mortgage
The Federal Housing Administration (FHA) offers fixed or adjustable rate mortgages for homebuyers at below-market interest rates to help those who are not able to qualify for Conventional mortgage products achieve homeownership. One of FHA’s highest priorities is to help first-time homebuyers and underserved populations become homeowners.
Congress created FHA in 1934. In 1965 it became part of the Department of Housing and Urban Development (HUD). FHA is a government agency that is self-funded through Mortgage Insurance charged to the borrowers. FHA loans are funded by a lending institution, administered by FHA, and insured by HUD.
My Community Mortgage
My Community is a suite of mortgage products offered by Fannie Mae to help low to moderate-income families achieve homeownership. My Community loans boast several flexible underwriting guidelines, which allow for the use of boarder income, and alternative forms of credit, with little or no borrower contribution and reserves required. Borrowers may also be eligible for reduced monthly mortgage insurance premiums and, when purchasing a one or two-unit property, can choose a fixed or variable loan product.
Don’t wait any longer be prepared and informed, then buy.
Contact Me Today and Have a Licensed Expert on your side!
Phone: (651)783.2469 or follow the links to find out more about buying or selling a home.
SECOND MORTGAGE PROGRAMS
City of Minneapolis American Dream Downpayment Initiative (ADDI)
The city of Minneapolis offers down payment assistance through the American Dream Down Payment Initiative (ADDI). This program provides an interest-free, deferred second mortgage up to $10,000 or 6% of the purchase price, whichever is greater. This loan may be used for closing costs and/or down payment assistance and is forgivable if the purchaser lives in the property for five years or more.
Anoka County Community Action Program (ACCAP) Down Payment Assistance Program
Anoka County offers down payment assistance up to $5,000 in the form of an interest-free, deferred second mortgage through the Anoka County Community Action Program (ACCAP). This program is designed to help first-time homebuyers achieve affordable homeownership.
Community Neighborhood Housing Services (NHS) Entry Cost Assistance Loan (ECAL)
Community Neighborhood Housing Services (NHS) offers down payment and closing cost assistance up to $3,000 as an interest-free, deferred second mortgage for those purchasing a home in selected districts in the city of Saint Paul. The purpose of the program is to help those earning less than 80% of the Area Median Income achieve affordable homeownership.
Ramsey County FirstHOME Down Payment Assistance Program
Ramsey County offers up to $20,000 as an interest-free, deferred second mortgage for first-time homebuyers who live and work in Ramsey County. These funds can be used for down payment assistance and/or closing costs.
Sheridan Neighborhood Organization (SNO) Homebuyer Assistance Program
Sheridan Neighborhood Community Neighborhood Housing Services (NHS) offers down payment and/or closing cost assistance up to $5,000 as an interest-free, deferred second mortgage for those purchasing a home in the Sheridan Neighborhood of Minneapolis. The purpose of the program is to help those earning less than 80% of the Area Median Income achieve affordable homeownership.
Ventura Village Homeownership Program
The Ventura Village neighborhood of Minneapolis offers up to $5,000 as an interest-free, deferred second mortgage for down payment and/or closing cost assistance to those wishing to purchase a home in Ventura Village. This loan is not restricted to first-time homebuyers and is forgiven if the purchaser lives in the home for five years or more.
Washington County FirstHOME Down Payment Assistance Program
Washington County offers up to $10,000 as an interest-free, deferred second mortgage for first-time homebuyers who wish to purchase a home in Washington County. These funds can be used for down payment assistance and/or closing costs in most communities in Washington County.
You can own a home for an investment as low as $500.
Contact Me Today and Have a Licensed Expert on your side!
Phone: (651)783.2469 or follow the links to find out more about buying or selling a home.
NEW CONSTRUCTION AND NEWLY REMODELED
Century Homes Program
The Century Homes Program is a partnership between the city of Minneapolis and the Greater Metropolitan Housing Corporation (GMHC) through which new single-family homes are built on city-owned vacant lots. The city of Minneapolis sells these vacant lots to GMHC and, when development costs exceed the sales prices, provides half of the financing to develop the properties. GMHC provides the other half of the financing, develops the properties, and sells the homes to interested, qualified buyers. The funds used to develop the property are a gift to or investment in the community.
Home Ownership Works Program (HOW)
The HOW Program was developed by the Minneapolis Community Planning and Economic Development Department (CPED) to offer first-time homebuyers the opportunity to move into recently remodeled homes. CPED acquires older homes throughout Minneapolis, rehabilitates them, brings them up to code, and then sells the homes at fair market value. In addition to offering these beautifully remodeled properties, HOW provides an interest-free, deferred second mortgage to help with the down payment.
Call today to schedule your free 20-minutes consultation
Contact Me Today and Have a Licensed Expert on your side!
Phone: (651)783.2469 or follow the links to find out more about buying or selling a home.
COMMUNITY LAND TRUST
The City of Lakes Community Land Trust (CLCLT)
The City of Lakes Community Land Trust (CLCLT) is a non-profit organization that creates perpetually affordable housing for low to moderate-income households who otherwise would be priced out of the market. The purpose of a Community Land Trust (CLT) model is to separate the ownership of the home from the land through the use of a ground lease in order to achieve permanent, long-term affordable housing. Homebuyers purchase only the house and enter into a 99-year Ground Lease with the Community Land Trust for the exclusive use of the land.
When a CLT homeowner decides to sell the home, he/she sells it to another low to moderate-income household for the original purchase price plus 25% of any appreciation in the home’s value. By limiting market appreciation, permanent affordability is ensured for future generations of low to moderate-income homebuyers.
The City of Lakes Community Land Trust Homebuyer Initiated Program (HIP)
The Homebuyer Initiated Program (HIP) was created by The City of Lakes Community Land Trust (CLCLT), a non-profit organization, to provide perpetually affordable housing for low to moderate-income households in the growing real estate market of Minneapolis. HIP helps buyers purchase and rehabilitate single-family homes that are for sale in the city of Minneapolis. The program lowers the cost of housing by separating ownership of the house from ownership of the land.
HIP is for homebuyers who are mortgage-approved but lack sufficient funds to reach the sales price. HIP bridges this gap between the sales price and the qualifying mortgage amount with the help of two grants totaling up to $90,000. In exchange for the grants, participating buyers agree to the Community Land Trust model of homeownership, which, when the buyers decide to sell, will limit the resale price and keep the homes affordable for future generations of low to moderate-income households.
Rondo Community Land Trust
The Rondo Community Land Trust (CLT) is a non-profit organization that creates perpetually affordable housing in Ramsey County for low to moderate-income households who otherwise would be priced out of the market. The purpose of a Community Land Trust (CLT) model is to separate the ownership of the home from the land through the use of a ground lease in order to achieve permanent, long-term affordable housing. Homebuyers purchase only the house and enter into a 99-year Ground Lease with the Community Land Trust for the exclusive use of the land.
When a CLT homeowner decides to sell the home, he/she sells it to another low to moderate-income household for the original purchase price plus 25% of any appreciation in the home’s value. By limiting market appreciation, permanent affordability is ensured for future generations of low to moderate-income homebuyers.
Rondo Community Land Trust (CLT) Homebuyer Initiated Program (HIP)
The Homebuyer Initiated Program (HIP) is a homeownership program through the Rondo Community Land Trust (CLT), a non-profit organization, to provide perpetually affordable housing for low to moderate-income households in the growing real estate market of Saint Paul. HIP helps buyers purchase and rehabilitate single-family homes that are for sale in the city of Saint Paul. The program lowers the cost of housing by separating ownership of the house from ownership of the land.
HIP is for homebuyers who are mortgage-approved but lack sufficient funds to reach the sales price. HIP bridges this gap between the sales price and the qualifying mortgage amount with the help of two grants totaling up to $50,000. In exchange for the grants, participating buyers agree to the Community Land Trust model of homeownership, which, when the buyers decide to sell, will limit the resale price and keep the homes affordable for future generations of low to moderate-income households.
Don’t buy a problem, buy a home.
Contact Me Today and Have a Licensed Expert on your side!
Phone: (651)783.2469 or follow the links to find out more about buying or selling a home.