First Time Home Buyer Program Available in Minneapolis and St. Paul
The 2010 City Living program for first time home buyers in Minneapolis and St. Paul was rolled out today. There are two options on this program, just like there used to be for anyone familiar with the program. For either option the buyer can get a FHA or VA loan–no Conventional mortgages.
Option 1 is a 30 year fixed rate loan at 4.75%.
Option 2 is a 4.99% 30 year fixed rate loan that also provides down payment assistance of 2% for the home buyer.
The 2% assistance comes in the form of a second mortgage, but if you live in the home for 7 years, the loan is forgiven–it would no longer need to be paid back. (You must be living in the home this entire time–can’t convert it to a rental home).
This program is only available for first time buyers (or those qualifying under the Veterans Exceptions). A first time buyer for those of you who don’t know the rule, is someone who has not owned a home they have lived in during the previous 3 years. If two or more people are buying together, all of them must be first time home buyers.
There is a minimum credit score of 620, there may be an option for people who have no credit score.
Programs like these always have income limits, so the people who need help the most can get. The limits are the following:
in Non-Targeted Areas:
- 1 or 2 person households: $83,900
- 3 or more person household $92,290
in Targeted Areas:
- 1 or 2 person households: $92,290
- 3 or more person household $92,290
The property can be a 1-4 unit, existing single family home, townhome or FHA approved condos.
The maximum sales price is $376,870.
This is a great program for first time home buyers who want to buy a home in the city limits of Minneapolis or St. Paul (not West St. Paul or South St. Paul). A standard FHA loan requires 3.5% down payment, so this program can take care of more than half of that, which can really help first time home buyers in the Twin Cities of Minneapolis or St. Paul.
To apply for this loan you can visit my secure web site www.MNHomeLoan.com and click on the Apply Online tab.
February 6th, 2010 at 9:50 pm
This is a fantastic program. I can’t believe that they are going to forgive the 2% second mortgage. That is like free money! I have sent this to all my first time home buyers!