MN START UP Down Payment Assistance Program


First time homebuyer loan guidelines

 

MHFA Minnesota Housing programMortgages Unlimited has been helping Minnesota homebuyers since 1991.

 

We partner with the Minnesota Housing Finance Agency to offer safe and affordable home loans, including loans combined with down payment assistance programs.

 

Minnesota MHFA PROGRAM Household income limits (As of  9/1/17))

 

Your household income must meet the following limits:

 

Area

1-2 People

3+ Persons

Income Limits

11-County Metro

$90,400

$103,900

Rochester Area

$86,600

$101,800

Balance of State

$80,400

$92,400

 

 

 

 

 

 

 

 

MHFA Home Cost Limits

 

The home you wish to buy in MN must be below this limit:

 

Area

Purchase Limits

11-County Metro

$306,000

Balance of State

$253,800

 

 

 

 

 

 

DOWN PAYMENT and CLOSING COST ASSISTANCE LOANS (as of Sept 1, 2017)

 

These are not gifts or grants, these are down payment assistance LOANS. You must pay them back. There are three payback options.

 

DEFERRED PAYMENT: Maximum assistance loan is $8,000. No payments, no interest due. You pay the money back when you sell, refinance, or no longer occupy the home. Available with Start Up and Step Up Loans.

 

DEFERRED PAYMENT PLUS: Maximum assistance loan is $10,000. Limited to limited target criteria. No payments, no interest due. You pay the money back when you sell, refinance, or no longer occupy the home. Available with Start Up and Step Up Loans.

 

Target criteria: Must meet two or more of these items:

  • Household size of four or more
  • Single head of household with minor dependents
  • House payment no more than 28% of income
  • Household member with a disability

Deferred payment income limits

 Household Size
Twin Cities Metro 
and Rochester 
 Greater Minnesota
1-2 Person
$65,000
$59,000
3 Person
$73,000
$66,000
4 Person
$82,000
$73,000
5 Person
$88,000
$79,000
6 Person
$95,000
$85,000
7+ Person
$99,500
$89,000

 

MONTHLY PAYMENT LOANS: Maximum assistance loan is $12,000. Payments are due on the assistance loan right away based on a 10-year loan.

 

Call (651) 552-3681 for more details.

MINIMUM CREDIT SCORES 

All applicants must meet minimum credit score requirements. The minimum score depends on the underlaying main loan program.

 

Absolute minimum scores:

 

USDA: 640
FHA: 650
Conventional: 640

 

Some programs, and sub-programs have higher minimum scores. Call (651) 552-3681 for specific details about your personal situation.

 

 

How To Apply for First Time Home Buyer Loans

 

Lack of down payment money is one of the biggest reasons many people think they can not buy a house.  The second item being poor credit.

 

We have access to many down payment assistance programs throughout Minnesota with different levels of assistance.  Most people get around $5,000 worth of assistance, but can often times go as high as $10,000.

 

Click here to apply online, and have an answer in a few business hours!

 

MHFA Start Up MN Housing program loan application


 

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Need More Information

Call Us: (651) 552-3681
Email Us: jmetzler@muihomeloans.com
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Approved FHA Lender, VA Lender, and USDA Lender in MN, WI, and SD

HUD, The VA, and the USDA requires those who offer their mortgage loans go through a stringent approval process. We are an approved FHA, VA, and USDA mortgage lender. We are not acting on behalf of, or under the direction of the VA or the Federal Government. HUD / FHA and the VA do not lend directly to the public, only through approved lending institutions like Mortgages Unlimited.