First time home buyer program and down payment assistance program 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 for down payment?

 Than YOU could be a home owner, and we can Help

When looking at your mortgage options, often the first place to focus is the down payment requirement. Different loan programs have different requirements, with some appealing more to first-time homebuyers. Another path to homeownership runs through some state or local assistance programs. While these programs typically do not offer the actual financing, they can often provide down payment assistance or help with closing costs.

While the specific rules vary by program and state, some basic guidelines revolve around your credit score, income, employment and price of the home. Employment can offer its own set of benefits with programs specific to teachers or public safety workers.

Buy a Home Owning a home is much more than a financial transaction. It means independence, growth, and a place to share with family and friends. We offer the programs and resources that will help you buy a home and be a successful homeowner. Affordable, fixed interest rates, a wide variety of loan assistance options, including both loans and grants to meet your needs

Whether you’re just starting your home search or have already found that perfect dream home, we’ve got you covered. It all starts by completing a no obligation loan application. 

Here are a few of the great reasons to choose a first time home buyer program with down payment assistance for your first Minnesota home

• Below market affordable interest rates
• Special programs available anywhere in Minnesota only
• Down Payment Assistance loans for eligible home buyers
• No payment today interest free assistance loans for those lower income participants
• Payment due assistance loans with higher income participants

The Minnesota Housing Finance Agency is a statewide program designed to help low to medium income household become home owners. The program combines a standard first mortgage, like an FHA loan, or a conventional loan with one of two down payment assistance program second mortgages to cover down payment and closing costs.

Mortgages Unlimited has been helping Minnesota first time home buyers since 1991. We partner with the Minnesota Housing Finance Agency (MHFA) to offer safe and affordable home loans, including loans combined with down payment assistance. We are one of MHFA's top partners.

To Be Eligible for the programs, you:

• Start Up Program - Be a first time home buyer (or have NOT owned a home the past 3-years)
• Step Up program - Can currently own a house, or recently owned
• Be credit qualified, with an acceptable credit score (minimum score varies based on underlying loan program).
• Lowest acceptable score for any program is currently 640.
• Have at least $1,000 of your own money for down payment (or 1% of the purchase price if home is under $100,000)
• Meet down payment assistance household income requirements
• Meet program requirements for sale price of the home
• Meet standard FHA loan, USDA Loan, VA Loan, or Conventional loan guidelines
• Be a U.S. Citizen, or a qualified non-citizen

Income limits for Minnesota Housing Programs

As of 4/12/19 and subject to change

The home you wish to buy must be under this purchase price. 

The down payment assistance is not a gifts or grants, these are down payment assistance LOANS. You must pay them back.

There are two 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

Monthly payment assistance loans can be used with either Start Up or Step Up, and can be used if over the deferred assistance income level

• Loans up to $15,000
• Payments are due on the assistance loan right away based on a 10-year loan
• Interest rate equal to first mortgage rate

*The 11-county Twin Cities Area is defined as: Anoka, Carver, Chisago, Dakota, Hennepin, Isanti, Ramsey, Scott, Sherburne, Washington and Wright Counties.

While we try to keep this web site as accurate as possible, income limits may have changed. Contact us here at FirstTimeHomeBuyer-MN.com for the most current income and other guideline changes.