Minnesota Mortgage Program Change Good for First Time Buyers
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As of March 1, 2010 Minnesota Housing (MHFA) raised their income limits for first time buyers using their Minnesota Mortgage Program. First time buyers are now able to earn up to 100% of the Twin Cities area median income. This means a household of 1-4 earning $83,900 or less is now eligible for the Minnesota Mortgage Program. In the past, Twin Cities first time buyers were limited to 80% of the median income, which meant a cap of $67,200 until the change.
This change means thousands more first time home buyers may be eligible for the Minnesota Mortgage Program through Minnesota Housing.
Typically the interest rate for the Minnesota Mortgage Program has been about 0.50% lower than standard mortgage rates. On a $200,000 purchase this would save a first time home buyer about $60 a month in payment. First time buyers could also use this lower rate to purchase about $9,000 more home using this program compared to the payment they would have using a standard mortgage.
If you are a first time buyer in the Twin Cities you want to check with me to see if you meet all of the eligibility requirements. Don’t pay too high of an interest rate because you are working with the wrong lender. Be sure to chose a mortgage professional that specializes in working with first time buyers in the Twin Cities.
March 7th, 2010 at 11:10 pm
This is great that MHFA is taking steps to include more buyers in their program. Especially as we try to move properties in the $150-$300k price range.