Down Payment Assistance
Basic Down Payment Assistance Programs for First Time Home Buyers
Lack of down payment money is one of the biggest reasons many people think they can not buy a house. The second item being bad credit.
We have access to many down payment assistance programs throughout Minnesota with different levels of assistance. Most people get around $8,000 worth of assistance, but can go as high as $17,000.
What Assistance program Is Right For Me?
Deciding which program is right for you, or which program will work depends on many factors. Some of these factors are:
Location of the Home
We suggest rather than try figuring it out on your own, that you consult with one of our licensed Loan Officers, who will review your application, and make suggestions as to what programs you may qualify for.
Have An Assistance Program In Mind Already?
Found a local down payment assistance program that seems right for you? No problem, but be sure to discuss it with your Loan Officer so we can verify the programs guidelines, and to make sure you really do fit the programs guidelines.
MINNESOTA DOWN PAYMENT ASSISTANCE PROGRAMS
There are many down payment assistance programs available, including state-wide and local programs. Our most popular assistance program is the MHFA program, available ONLY in Minnesota.
The MINNESOTA HOUSING FINANCE AGENCY (MHFA) program
Working in partnership with Minnesota Housing, Cambria mortgage is proud to offer this very popular down payment assistance loans in the state of Minnesota. Various income limits apply. A monthly payment program offers a 10-year payback period. A separate “Start Up” program for first-time home buyers provides no-interest loans that do not have monthly payments. These are loans, not gifts or grants.
Learn more about MHFA Down Payment Assistance
Down payment assistance in Minnesota
WISCONSIN HOUSING AND ECONOMIC DEVELOPMENT AUTHORITY (WHEDA)
Offers down-payment assistance and closing cost loans in the state of Wisconsin. Various income limits apply.
Location Location Location
First time home buyer and down payment assistance programs can vary depending on where the property is located. There are many small programs that can be as small as neighborhood specific, to county specific, to the entire state.
It is nearly impossible for us to keep track of the many local small local programs. With a little research, you may find a perfect one that works best for you.
We are aware of, and very familiar with all of the big state-wide programs, including the very popular Minnesota Housing Finance Agency (MFHA) Start Up and Step Up programs, and the down payment assistance that can be added.
Buying a Home with No Down Payment
True no down payment loans are generally limited to the VA loan for our military personal, or the USDA rural housing loan. But getting very low down payment, with programs like Home Ready, or an FHA combined with a down payment assistance program means many people can get into their own home with less than $2,000 out-of-pocket. and some people as little as $1,000 out-of-pocket.
After we review your application, our first time home buyer experts will zero in on programs available to you.
Sign Up For Classes
Many first time home buyer, and most down payment assistance programs REQUIRE you to take special home buyer education classes.
We generally suggest you complete a full loan application, so we can review your qualification before taking classes, as they may not be necessary.
Local DOWN PAYMENT ASSISTANCE PROGRAMS
Below are examples of some, but not all, of the local programs. These programs are subject to fund availability. Please contact a FirstTimeHomeBuyer-MN.com expert for more information.
Project Reinvest offers down payment assistance on homes in cities of St. Paul and Minneapolis. The loan does not impose monthly payments nor accrues interest, and is paid back when you sell the home. Income limits apply.
Outside of the cities of St. Paul and Minneapolis, the Midwest Minnesota Community Development Corporation runs Project Reinvest assistance programs, and different income limits apply.
RAMSEY COUNTY FIRSTHOME
In Ramsey County, the county’s FirstHOME program offers first-time homebuyer assistance for low- to moderate-income applicants at zero interest. Buyers must show three years of uninterrupted full-time work history, and the loan must be paid back at the time the house is resold or refinanced. House purchase price limits apply.
CITY OF WOODBURY
The city of Woodbury offers low-interest loans to homebuyers who have not owned a home within the past three years, with special discounts for seniors and military veterans. Family income limits apply. House purchase price limits apply.
Woodbury also assists with the purchase of foreclosed properties, and that program is not limited to first-time homebuyers.
NORTHSIDE (Minneapolis Northside Residents Redevelopment Council)
Some programs are specific to certain neighborhoods, such as low-income areas with high vacancy and foreclosure rates. The Northside Residents Redevelopment Council offers down-payment assistance for homebuyers in the Near North and Willard Hay neighborhoods of Minneapolis. There’s no income limit, and no monthly payments are required on this forgivable loan, which does not have to be paid back at all if the homeowner occupies the house for at least seven years.
Dakota County First Time Home Buyers Program: Homebuyers purchasing their first home in Dakota County can access:
Fixed interest rate mortgage financing
Mortgage Credit Certificate
$8,500 in down payment and closing cost assistance
Reduced Private Mortgage Insurance (PMI) with our conventional HFA preferred mortgage