Mortgage and Real Estate Blog

head_left_image

Down Payment Assistance Program in Minnesota

Face it, lack of down payment money is a huge obsticle for many potential home buyers. But we make dreams come true with our first time home buyer and down payment assistance loans

What do these loan programs have to offer first time homebuyers in MN?

  • Down payment assistance helps you get into a home today.

  • 30-year loans with affordable, low, fixed interest rates for the life of the loan

  • Interest-free loans to help with down payment and closing costs for eligible borrowers

  • Mortgage Credit Certificates - Which can be used to lower your taxes up to $2,000 a year.

You may be eligible for Minnesota down payment assistance if you:

  • Are a first-time homebuyer, meaning you have not owned a home in the past three years (Start Up program)
  • Currently own a home, but want to buy a new home (Step Up program)
  • Have Federal Income Tax Return for the last three years
  • Are able to put a down payment of at least $1000 down (or 1% if the home is under $100,000) of YOUR OWN money
  • Have a minimum credit score of at least 640. Note some programs have higher score requirements.
  • Buy a qualifying home within prescribed purchase price limits
  • Have an income at or below prescribed Minnesota Housing income limits

Click here to apply online for a down payment assistance loan in MN


 

What kind of First Time Home buyer, and down payment assistance programs does Minnesota Housing offer?

Down Payment Assistance Programs

Down payment assistance in Minnesota is available to eligible future home owners who meet underwriting guidelines, and can only be used in conjuntion with Minnesota Housing first mortgage programs. You must get the main loan and the assistance from the same lender, and not all lenders offer these programs. These programs are loans, not gifts or grants.  They must be paid back.

Assistance Option 1: Deferred Payment,

These loans are available up to $8,000. No payments are necessary today. You must pay the loan back when you sell, refinance, or no longer occupy the home. You must meet income limits which vary based on what county you buy a home in, and your family size.

     or Deferred Payment Plus Loans

These loans are available up to $10,000. Must meet all conditions of basic deferred payment program. To get the Plus program extra money, you must also meet at least two of the following criteria; sole head of household with at least one dependent living in the home, household of four or more people, disabled household member, front housing payment ratio of 28% of income or higher.

Maximum household income for 1-2 person household capped at:
  $69,000 in metro counties
  $69,000 in Dodge and Olmstead counties
  $62,000 in all other counties

Maximum household income for 7+ person household caps out at:
  $103,900 in metro counties
  $101,800 in Dodge and Olmstead counties
  $92,000 in all other counties

Limit is based on household income, which means all adults living in the home who have income, regardless if they are on the actual loan or not.

Call (651) 552-3681 for more information on your family size.

Assistance Option 2: Monthly Payment Loan

These loans are available up to $12,000. You will make monthly payments on this loan starting right away. This is a 10-yr loan. The interest rate matches your main mortgage loan. You must completely pay the loan back when you sell, refinance, or no longer occupy the home. You must meet income limits which vary based on what county you buy a home in, and your family size. Call (651) 552-3681 for more information.

Income limits: 1-2 people
  $90,400 in metro counties
  $88,600 in Dodge and Olmstead counties
  $80,400 in all other counties

Income limits: 3+ people

   $103,900 in metro counties
   $101,800 in Dodge and Olmstead counties
   $92,400 in all other counties

Click here to apply online for a down payment assistance loan in MN

Two Basic First Time Home Buyer Loan Programs:  

Start Up First-time Homebuyer Loans

The "Start Up" program is for low and moderate income first time home buyers homebuyers throughout Minnesota. The interest rates are below market rates and available to Minnesotans based on their income. Assistance program Income information  is available on our more detailed desktop version web site.
 

  • Purchase Only Loan
  • 640 minimum credit score. Actual score may be higher depending on program
  • Low, affordable interest rates

 Two downpayment assistance options available for eligible borrowers:

  • Monthly Payment Loan
  • Deferred Payment Loan
  • Step Up

NON-First Time Home Buyer Loans
The "Step Up" program is designed for move up buyers looking for a different home, or someone who HAS owned a home in the previous three-years. This programs helps low and moderate income Minnesotan's move up to a newer home with a very small down payment. The interest rates are below market rates and available to Minnesotans based on their income. Assistance program Income informationis available on our more detailed desktop version web site

  • Purchase and refinance options
  • 640 minimum credit score. Actual score may be higher depending on program
  • Low, affordable interest rates
  • One downpayment and closing cost loan option available for eligible borrowers:
    • Monthly Payment Loan

MCC (Mortgage Credit Certificates) 

Combine a Start Up Program loan with Mortgage Credit Certificates (MCC), which can be used to lower your federal tax liability up to $2,000 per year.  be sure to ask about an the MCC program when applying.

  • For First-time homebuyers
  • Minnesota Housing home mortgage loan with low, affordable interest rates
  • Mortgage Credit Certificate (MCC) to reduce your federal income tax liability up to $2,000 per year
  • Optional Monthly Payment Loan to cover downpayment and/or closing costs

 

The house you buy must be less than: (applies to all programs)

  • 11-County Metro: $306,000
  • Balance of State: $253,800

Click here to apply online for a down payment assistance loan in MN


We are and Approved MHFA First Time home buyer program, and Down Payment Assistance program lender

When you decide to buy a home or refinance a mortgage in Minneapolis, St. Paul, Duluth, Rochester, or anywhere in Minnesota, your search for a home loan or mortgage only need to start and end here.  With so many lenders to choose from in the greater metro area, and nationally, you need to choose one you can trust to find the mortgage loan that’s best for you.

 

Mortgages Unlimited, Inc - St Paul Office
33 Wentworth Ave E, Suite 290
St Paul, MN 55118

NMLS 274132  Equal Housing Lender
Office (651) 552-3681   E-Mail: jmetzler@muihomeloans.com

Loans offered in partnership with MInnesota Housing Finance Agency. Minnesota Housing Finance Agency

Comment balloon 1 commentJoseph Metzler • September 12 2017 06:51PM
Down Payment Assistance Program in Minnesota
share
Face it, lack of down payment money is a huge obsticle for many potential home buyers. But we make dreams come true with our first time home buyer and down payment assistance loans What do these loan programs have to offer first time homebuyers in… more
Oops, I have collections on my credit report
share
Minneapolis, MN: No one likes having dings on their credit report, but let's face it, sometimes it is impossible to avoid. When credit dings happen, it is important to work on getting back into the credit good graces, as it effect so many things in… more
What are mortgage loan closing costs, and how do I pay them?
share
Home buyers, especially first time home buyers, commonly fail to understand all the costs involved in buying a home. Everyone understands down payment, so no issues there. But mortgage loan closing costs are a whole different story. I often hear… more
Reasons why you can buy a home with a very small down payment
share
Reasons why you can buy a home with a very small down payment The lack of down payment money is by far the biggest reason people do not believe they can buy a home. A recent survey even indicated a whopping 44% of non-homeowners thought you… more
Mortgages Unlimited, Top 150 Workplace 2017
share
MINNEAPOLIS, June 26, 2017. — Mortgages Unlimited, Inc, a mortgage company based in Maple Grove, MN, has been named one of the Top 150 Workplaces in Minnesota by the Star Tribune. A complete list of those selected is available at StarTribune. com… more
Why do I need mortgage insurance?
share
Why do I need mortgage insurance? When buying a home, and getting a home loan, being approved or not all comes down to risk. If the mortgage company thinks you are a good risk, you get the loan. If you are too risky, you get denied. Pretty simple… more
How credit card use can effect your credit score
share
How credit card use can effect your credit score Minneapolis, MN: Why does how much credit you're using matter? Simple, lenders look for signs of responsible credit usage, and the better you are at living within your means, the better it is for… more
Your house is NOT worth what YOU think.
share
Your house is NOT worth what YOU think. Minneapolis, MN: We've all had to listen to someone who, regardless of what the professionals tell them, simply belive their house is worth more than everyone else's home. Just because you reclaimed wood from… more
How higher mortgage rates effect you
share
Minneapolis, MN: Face it, The super low mortgage interest rates are gone. Higher mortgage rates are here already, and it is very unlikely we will see them go back down anytime soon. Rather, it is anticipated that we should see 30-yr fixed rates… more
Down Payment Assistance Programs in MN
share
DOWN PAYMENT ASSISTANCE PROGRAMS IN MN - Tired of Renting? Ready to become a homeowner? - Have OK Credit and stable employment? - Have a few thousand in the bank? - Have at least $1, 000 of your own money for down payment? We Can Probably Help… more