Programs to assist with saving for a Down Payment
There are numerous state, county, city and neighborhood down payment assistance programs in Minnesota that can be found on our website. In the event you don't qulaify for these programs or they don't fit your needs, please consider the following programs that can help you save for a down payment.
EARN Individual Development Account (IDA) Program
This program is designed to help low to moderate income people set up a special savings account to encourage asset building — it is designed to help individuals build up financial assets so they can achieve the “American Dream.”
These IDAs are set up through partnerships between financial institutions and program sponsors, such as nonprofit organizations. The money saved in the IDA program is matched by the financial institution to incentivize saving into a learned habit.
Savers are required to complete financial education classes during their saving period and use the amassed savings for asset building purposes such as higher education, a small business startup or home ownership. The participant opens up a savings account after signing up and the financial institution takes care of all the transactions. The program can be from six months to as long as several years. The participants are allowed to withdraw the money, with approval from program partners, as soon as they reach their savings goal.
Family Assets for Independence in Minnesota Matched Savings Program
This program is the collaboration of many agencies such as the US Department of Health and Human Services, the Office of Community Services and the Greater Twin Cities United Way. It is meant to help low-wage employees in Minnesota build assets through the acquisition of a home, the quest for higher education or the startup of a small business.
This program helps participants set aside $40 of savings from their monthly earned income into an account that will be matched 3 to 1 upon the completion of the asset contracts. The savings must be earned as income. Account holders need to attend at least 12 hours of financial management courses as well as 10 hours of asset-specific courses. In order to qualify, applicants’ household income must be equal to or less than 200% of the poverty line. Each account holder has two years to save from the day of the first deposit.
- Required to deposit $40 of earned income each month.
- Must attend 22 hours of financial education.
- Applicants must be equal or less than 200% of the poverty line.
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!