STATEWIDE PROGRAMS

Minnesota Housing Start Up and Step Up Programs

Assistance Available:
Minnesota Housing offers the option of receiving up to $15,000 in downpayment and closing cost assistance when you are approved for a Minnesota Housing home mortgage.

The monthly payment loan program runs over a 10 year period with an interest rate equal to your first mortgage rate.

A deferred payment loan of up to $8,000 can only be obtained through the Start UP program and is available only to first time homebuyers. Up to $10,000 in the form of a deferred loan is available to borrowers who meet specific criteria. Deferred payments are not paid monthly and have no interest rate. The loan is due when you sell, move, refinance, or pay off your first mortgage.

Income limits apply. You must attend a homebuyer education course.

CITY AND COUNTY PROGRAMS

Dakota County
First Time Homebuyer Program

Assistance Available:
The Dakota County Community Development Agency offers qualified first time home buyers fixed rate mortgage financing through the First Time Homebuyer Program. You can receive up to $8,500 for downpayment and closing cost assistance along with reduced private mortgage insurance. The exact amount of downpayment assistance is dependent on family size and income.

The assistance is in the form of a second mortgage. There are no monthly payments during the term of the first mortgage and zero interest. The loan is repaid when the home is sold, refinanced, or paid off. You can pay the second mortgage in full or part at any other time.

Qualifications:
You must be a first time homebuyer (have not owned a home in the past three years), unless you are an honorably discharged veteran. You cannot be a veteran who has previously purchased a home through a similar program however. You must have a minimum credit score of 640. You must live in the home as your primary residence.

The maximum purchase price for a 1 or 2 person household is currently $300,000. The maximum purchase price for a 3 or more person household is currently $330,100. You must meet the income requirements. You must complete a homebuyer education course. The property purchased must be in Dakota County.