Down payment assistance loans in MN
 

DOWN PAYMENT ASSISTANCE RULES AND GUIDELINES


The rules and guidelines for Minnesota Housing Finance Agency (MHFA) first time home buyer down payment assistance programs in MN are a bit overwhelming for most potential new home owners.

 

We suggest you don't try to figure it out yourself...  Rather, simply call us at (651) 552-3681, or fill out a full online application. Our licensed professional Loan Officers will review the application, zero in on the best loan for you, then contact you to discuss your options, all with NO COST and NO obligations whatsoever.

 

Free Mortgage Consultation. --->>>

Just fill in your information on this page, and we'll call you!

 

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STEP ONE - INCOME GUIDELINES - As of 5/22/2014

 

You must meet the following household income eligibility guidelines. This is all income for those living in the home, not just whoever is applying for the loan.


  AREA 1-2 people 3+ people
Maximum
 allowable
income
Metro $82,900 $95,335
Rochester Area $81,300 $$93,495
Balance of State $73,900 $84,985

 

STEP TWO - HOME COST / LOAN LIMITS

 

The home must cost less than the following:

 

Home Costs / Loan Limits
Property
Location
11 County Metro Area Balance of State
$310,000 $265,000

 

STEP THREE - Determine which type of down payment assistance you can obtain.

 

There are two down payment assistance options.

  • A deferred loan, where there are no payments due, and no interest due today. The loan must be paid back when you sell or no longer occupy the home. This option requires additional income limits (see below)
  • A monthly payment loan. You must begin paying this loan back immediately, amortized over a 10-year period. This option is available to everyone who qualifies for the MHFA program.

 

Your income must be at or below these income limits TO QUALIFY for the deferred payment down payment assistance option.

Household Size 11-County Twin Cities Metro Area* Rochester MSA** Balance of State

1-4 Person

$60,000

$60,000

$55,000

5 Person

$64,800

$64,800

$59,400

6 Person

$69,600

$69,600

$63,800

7 Person

$74,400

$74,400

$68,200

8 Person

$79,200

$79,200

$72,600

9 Person

$84,000

$84,000

$77,000

10 Person

$88,800

$88,800

$81,400

 

STEP FOUR - Down Payment Loan Options

 

View the three assistance qualification options below:

 

Key Features

Monthly Payment Loan

Deferred Payment Loan

HOME HELP Loan

Loan Amount

Up to the greater of $5000 or 5% of the purchase or refinance price Up to the greater of $5000 or 5% of the purchase price (max $7,500) Up to the greater of $5000 or 5%, with as much as $10,000 based on special needs

Loan Term

10-year term Equal to first mortgage term Equal to first mortgage term
Borrower Contribution Borrower must contribute $1,000 or 1% of the purchase price, whichever is less Borrower must contribute $1,000 or 1% of the purchase price, whichever is less Borrower must contribute $1,000 or 1% of the purchase price, whichever is less

Repayment

Amortizing loan.  Requires a monthly payment repaid in equal payments beginning right away Deferred payment.  Does not require monthly payments, but must be paid in full upon satisfaction of first mortgage Deferred payment. 50% of the loan forgiven after sixth year of owner occupancy.  50% repaid at end of loan term

Interest Rate

Equal to first mortgage rate Interest-free Interest-free

Income Limits

Use Start Start Up/Mortgage Credit Certificate/Step Up/Monthly Payment Loan Income Limits Deferred Payment Loan income limits (see above) HOME HELP Loan income limits

Homebuyer Education

Required Required Required

First-time Homebuyer Requirement

No Yes Yes

Available with which Minnesota Housing first mortgage program(s)?

  • Start Up
  • MCC (with First Mortgage)
  • Step Up
Start Up Start Up from a Minnesota Housing lender approved to offer HOME HELP
 

STEP FIVE - APPLY for your  Down Payment Assistance Loan in MN

 

MHFA Mortgage ApplicationAppling is super easy. 

Simply call our office at (651) 552-3681, or start by filling out the easy online mortgage application. We will review your application, determine what, if anything you qualify for, write you a pre-approval letter, and get you connected with a great Real Estate Agent to start searching for your dream home!

 

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