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 loans specifically for individual Minneapolis neighborhoods.

CityLiving MCC Mortgage Credit Certificate (MCC)

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

  

CityLiving Program

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)

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.

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!

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FROM OUR BLOG

Friday, December 27, 2013

Hennepin County Funds!

Hennepin County’s first-time homebuyer program operates on a first-come, first-serve basis. For additional information on the first-time homebuyers programs, downpayment and closing costs assistance and homebuyer training, contact us below....  Read More

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Total Properties Listed: 25,217
Month-Over-Month Change: 13.41%
Average Days On Market: 78
Total New Properties Today: 8
Median List Price: $219,900
Month-Over-Month Change: 3.29%