Minneapolis first time home buyer programs

Minneapolis has several programs available to first time home buyers that encompass all neighborhoods within Minneapolis.  These programs are covered below.  It also has first time home buyer programs specifically for individual Minneapolis neighborhoods.

Bridge to Success Contract for Deed Program

The nonprofit organization based out of the Twin Cities called The Family Housing Fund kicked off fresh program to forge economical housing opportunities. Launched in late 2008, this new initiative is called The Bridge to Success Contract for Deed Program.

This program is meant to help out buyers and sellers who may not qualify for loans otherwise.   Available properties can be found in Minneapolis and St Paul.

The Family Housing Fund contributed a $500k loan to the Greater Metropolitan Housing Corporation and Dayton’s Bluff Neighborhood Housing Services.

These organizations are set up to use the pools of funds to market properties to those who might not qualify for typical mortgages.

20% of the purchase price is made up from the resources of the Family Housing Fund — the other 80% is covered by lenders. The pairing eliminates private mortgage insurance from the equation. Homeownership and financial education are key pieces of the program — after three years the buyer will be ready for a mortgage.

Summary:

  • Similar to a line of credit.
  • Financed by the seller instead of a private lender.
  • Eliminates private mortgage insurance.
  • 20% of purchase price covered by Family Housing Fund.

Minneapolis Houses for Heroes

GMHC offers National Guard members and those in the reserves a huge break towards buying a home. Those members deployed in the war on terror and those who have returned from deployment can get as much as $20,000 toward the purchase of a home in Minneapolis. More details can be found on our Military and Heros Program page

Buying your first home can be overwhelming. Let us help!  We are committed to finding you any grant monies or assistance programs available to you.  Our buyer agent services are FREE!  Please contact us for more information.  We have assisted hundreds of first time home buyers and look forward to the opportunity to assist you!

Find Out What Mortgages You Might Qualify For

First Name:
Last Name:
Email Address:
Phone:
Address:
City / State / Zip:

Your Credit   Income

How is Your Credit Score?
Approximate Annual Household Income?
Price Range
 

Other Details

Planning to purchase a home in:
In what general area would you like to live?
Are you working with a Real Estate Agent? Yes No
Agent Name:
Agent Company:
Comments:

CityLiving MCC Mortgage Credit Certificate (MCC)  (No longer accepting applications)

Offers a credit of 20% of yearly mortgage interest to offset a federal tax liability (no funds for Down Payment)

CityLiving Program (No longer accepting applications)

The City of Minneapolis offers mortgage loans and two types of home improvement loans through its CityLiving Home Programs, a joint effort between the City of Minneapolis and the City of Saint Paul. For more than 20 years the two cities have worked together to create mortgage loan products for low- and moderate-income families. Typically free grants are offered up to 2% of the loan amount if you pay a little higher rate (Usually still below market rate) or you can get a slightly lower rate if you don't choose the free grant.  Only available for First Time Home Buyers.

CityLiving loans offer homebuyers an opportunity to purchase Minneapolis homes at an interest rate that historically ranks below general market rates.

Here are the qualifications the program expects:

  • Maximum household income for 1-2 people is $84,000
  • Maximum household income for 3 or more people is $92,400
  • Maximum purchase price limit is $276,870
  • 2% grant available for down payment or closing costs with a slightly higher interest rate

The City Living Program also offers homebuyer education and counseling through its Home Stretch Program.  Coordinated by the Minnesota Home Ownership Center, Home Stretch educates people about the home buying process so they can avoid common mistakes and predatory lending. Finally, after the home has been purchased, CityLiving also offers both Code Abatement Loans and Home Repair Loans for very low-income homeowners:

The City of Minneapolis will give interest-free loans for code abatements for qualifying households that are within 50% of the median income for this metropolitan area. The maximum loan amount is $20,000. The loan is repaid at the time the house is sold.  Amortizing loans at 1% interest are available for home repairs. The Maximum term is 20 years. The maximum loan is $25,000. The maximum income to qualify for this loan is 80% of the median income for the metropolitan area. This loan can only be used to complete code repairs.

For information on these programs, contact us below.

Home Ownership Works (HOW) (unavailable)

Minneapolis Community Planning and Economic Development (CPED) offers first-time homebuyers the opportunity to move into a recently remodeled home through the Home Ownership Works (HOW) Program. Through the HOW program, CPED remodels older homes in Minneapolis, making some improvements and bringing the property up to code. Homebuyers who pursue this program will move into a home that offers all of the charm and characteristics of an older home without having to put in the work to fix it up.  Prior to purchasing a home through HOW, interested parties will need to complete two Home Buyer Education Workshops.

The Pre Purchase Workshop, coordinated by the Home Ownership Center, provides comprehensive information about the home purchasing process and prepares potential buyers for home ownership. The Housing Maintenance Workshop, conducted at Northside Neighborhood Housing Services, provides training on general property maintenance such as furnace function and minor plumbing repairs.

Minneapolis Community Planning and Economic Development (CPED) (unavailable)

Offers First Time Home Buyers the opportunity to move into a recently remodeled home through the Home Ownership Works (HOW) Program. Through the HOW program, CPED remodels older homes in Minneapolis, making some improvements and bringing the property up to code. Homebuyers who pursue this program will move into a home that offers all of the charm and characteristics of an older home without having to put in the work to fix it up.  Prior to purchasing a home through HOW, interested parties will need to complete two Home Buyer Education Workshops.

Home Ownership Made Easy (HOME) (unavailable)

The Home Ownership Made Easy program is available only to current Minneapolis public housing residents and/or Section 8 participants seeking to move into homeownership.  When families are prepared to buy a house, they will be put in contact with a) a participating lender to apply for a mortgage loan offering competitive or lower than market interest rates and b) a trained member of the Minneapolis Area Association of REALTORS® to begin looking for their home. Participants are required to make a certain percentage of the down payment with their own funds, with HOME providing a loan to assist with the down payment. This loan will be repaid (with interest) once the home is resold in the future. If a prospective family is unable to come up with the full down payment, they may qualify for a down payment grant from the HOME Program - to be paid back through volunteer work in their community. Families may also receive interest-free, closing-cost loans which will be required to be paid back once their home is resold in the future.  

Minneapolis Advantage Program (MAP) (unavailable)

The Minneapolis Advantage Program was created to help potential first time home buyers purchase a home in areas of the city challenged by foreclosures and vacancies. MAP offers a $5,000, zero-percent interest loan that is forgiven over 5 years, as long as they buyer stays in the home. Funds can be used to pay for closing costs, down payment, or even small repairs to the home. Funding is limited and income eligibility requirements apply. Loans will be given on a first come, first serve basis and are for purchasing homes in eligible neighborhoods. Properties must be either a single-family detached home or duplex that is in foreclosure, was a foreclosed property that has been purchased by a non-profit for the purposes of selling it to an owner-occupant, or is on the City’s vacant and boarded list. See the Neighborhood programs to see where MAP is available.

Minneapolis Home Ownership Program (HOP) (unavailable)

The Home Ownership Program offers affordable home ownership opportunities in non-impacted areas of Minneapolis to buyers with incomes at or below 80% of the metropolitan median income. The City provides up to $30,000 per home in affordability gap financing to the homebuyer in the form of a deferred loan due and payable at the time of sale of the property. The Home Ownership Program is a partnership between the City of Minneapolis and the Greater Metropolitan Housing Corporation.

FROM OUR BLOG

Monday, February 09, 2015

Minnesota Stops the Freeze on TurboTax Prepared Returns

In the past week many Minnesotans seeking to get their 2014 taxes done have been on a rollercoaster. Because of an apparent security breach of Turbo Tax's database, the Minnesota Department of Revenue suspended consumer's ability to submit their ...  Read More

Twin City Market Trends

Total Properties Listed: 26,905
Month-Over-Month Change: 13.77%
Average Days On Market: 97
Total New Properties Today: 32
Median List Price: $227,777
Month-Over-Month Change: 3.58%