First Time Home Buyer In Minnesota - Down Payment Assistance and Mortgage Programs

Down Payment Assistance and Special Mortgage Programs are available in the State of Minnesota for first time home buyers from the Minnesota Housing Finance Agency and particpating lenders throughout the state. Minnesota Housing offers a wide range of homebuyer assistance programs giving the possibility of homeownership to many Minnesotans.

Buying a Home Through The Community Activity Set Aside Program

• Homebuyer must be a first time home buyer



• The homebuyer must have federal income tax returns for the past three years



• The homebuyer must have acceptable credit – they must qualify for an FHA, VA, Fannie Mae or Freddie Mac Conventional Loan through a participating lender.



• The Homebuyer must fall into several different targeted markets such as Households of Color or Hispanic Ethnicity, a Single Headed Household, or fall under the number of programs under the Workforce Housing Market.

What Is The Minnesota Workforce Housing Targeted Market?

• New Construction in Targeted Areas. Targeted areas include the counties of: Aitkin, Anoka, Beltrami, Benton, Blue Earth, Carver, Cass, Chisago, Clay, Crow Wing, Dakota, Douglas, Goodhue, Hennepin, Isanti, McLeod, Morrison, Nicollet, Olmsted, Ottertail, Pine, Ramsey, Rice, Scott, Sherburne, St. Louis, Stearns, Steele, Washington, and Wright.



• New construction in Approved developments



• Government sold homes or homes sold by non-profit agencies



• Homes with long-term affordability including Community Land Trust and deed restricted homes



• Approved employer-based initiatives – this program works with employers who have signed up with Minnesota Housing to offer home buyer incentives to employees. See your employer to find out if your employer participates in this program



• Neighborhood and Community Revitalization Projects



• Foreclosure Remediation Efforts

The Minnesota Housing Finance Agency Indian Housing Program

Home buyers must also meet maximum income limits for the county where they are buying their home; household size also determines income limits. For downpayment assistance using this program qualified buyers can use the Homeownership Assistance Fund Loan as described below.

Homeownership Assistance Fund For Down Payment Assistance

The HAF Entry Cost Assistance (down payment and closing cost assistance) can be up to $3,000. This is also an option if you qualify for the CASA Mortgage Loan Program where the HAF provides up to $75 per month to help pay the mortgage in the first few years of the mortgage.

The HAF loan may be available to you if you:

• Are eligible to purchase a home through the CASA (Community Activity Set Aside Program),



• You are an individual or family that meets certain eligible target markets including being a single headed household



• A household of Color (American Indian, Alaska Native, Asian, Black or African American, Hispanic or Latino Ethnicity, Native Hawaiian or Other Pacific Islander)



• Disabled Homebuyer or have a disabled household member



• Purchasing a home in a low-income census tract



• If your household income is less than 60% of the Area Median Income where you are looking to purchase.

Buying a Home Using the HOME Homeowner Entry Loan Program – HOME HELP

The HOME HELP program is an interest free, deferred loan program that is due if homebuyer transfers ownership of the home within the first five years of the mortgage being in place. After 5 years 70% of the HOME HELP loan is forgiven with the remaining 30% being due when the CASA mortgage is paid in full.

To get additional information about down payment assistance programs, or to find out more about mortgage programs please complete the information below: