Homeownership Is Possible With Minnesota Housing Finance Agencies First Time Home Buyer Mortgage Programs
Benefits of MHFA Mortgage Loans
Below-market interest rates
Interest-free loans to help for with down payment and closing costs (up to $8500)
Minnesota Housing Mortgage Loan Program Eligibility
To be eligible for a Minnesota Housing First-Time Homebuyer Loan, you must meet these requirements:
- Be a first-time homebuyer (meaning you have not owned a home in the past three years).
- Have acceptable credit (640+ middle credit score)
- Meet the requirements for income limits (listed below)
- Have federal income tax return copies for the last 3 years.
- Have an income at or below prescribed MHFA limits and want to buy a qualifying home. Limits are linked below.
MHFA Income Limits
Level 1 = $3,000 in down payment assistance. Level 2 = $4,500. Level 3 = $8,500 (under Home Help program)
MHFA Minnesota Down Payment Assistance Loans
(Homeownership Assistance Fund HAF)
The Homeownership Assistance Fund (HAF) is available only to borrowers participating in one of MHFA’s mortgage loan programs. The program provides Entry Cost Assistance to help borrowers with their down payment and closing costs.
Borrowers qualify for HAF down payment assistance is they meet one of the following criteria;
Eligible for CASA program
Single headed household
Household of color or Hispanic ethnicity
Household contain person(s) with disabilities
Borrowing purchasing in a low income tract
Household earns less than 60% of medium income
Interest free down payment assistance loans (HAF) loans are paid back when the homeowner sells, refinances, no longer occupies the home or pays off the first mortgage.