MINNESOTA DOWNPAYMENT ASSISTANCE & FIRST TIME HOMEBUYERS

START-UP

Minnesota Housing has been helping home buyers finance homes for more than 40
years. We partner with a statewide network of approved lenders to offer safe and affordable home loans.

Why choose Minnesota Housing?
• Low, affordable interest rates
• Downpayment and closing cost loans for eligible borrowers
• Statewide network of experienced lending partners

To be eligible, you must:
• Be a first-time homebuyer (or have not owned a home in three years)
• Be credit qualified with a minimum credit score of 640
• Meet program requirements for income and home cost limits
• Qualify for an FHA, FHA Streamlined 203k, RD, VA, Conventional Fannie Mae HFA Preferred, or Conventional Fannie Mae HFA Preferred Risk Sharing loan

STEP UP

Minnesota Housing introduces a new program to help homeowners refinance or purchase a new home:

Why Choose A Minnesota Housing Step Up loan?
• Available to existing homeowners and non-first-time home buyers
• Purchase and refinance options
• Affordable interest rates
• Monthly Payment Loan available for down payment and closing costs

To be eligible, you must:
• Be credit qualified with a minimum credit score of 640
• Meet income and loan or home cost limits
• Qualify for a FHA, RD, VA, Conventional Fannie Mae HFA Preferred, or Conventional Fannie Mae HFA Preferred Risk Sharing loan

DOWNPAYMENT AND CLOSING COST ASSISTANCE

Eligible Minnesota Housing borrowers have access to three downpayment and closing cost loan options, with availability depending on the first mortgage program selected.  Additional eligibility requirements apply.

• Monthly Payment Loan
• Deferred Payment Loan
• HOME HELP Loan

MCC (MORTGAGE CREDIT CERTIFICATE PROGRAM)

What is an MCC?
A mortgage credit certificate (MCC) allows you to claim 35% of the mortgage interest you pay each year as a federal income tax credit, reducing your tax bill by up to $2,000 per year.

How it Works

How does an MCC work with my home mortgage?
You will need a mortgage to buy the home. You can combine a low-interest Minnesota Housing mortgage with the MCC.

How much money can I save with an MCC?
• To benefit from an MCC you must have an income tax liability.
• Savings vary, depending on your loan amount and interest rate.
Example:
$175,000 loan amount at 4.375% interest
Estimated savings over the life of the loan = $44,000

How long can I use the credit?
You can use the MCC for up to 30 years, or until you refinance, sell the home or move.

Can I still take the mortgage interest deduction on my income taxes?
Yes, you can deduct the remaining 65% of the mortgage interest paid.

Can I get help with my downpayment?
With a Minnesota Housing home mortgage you can get both an MCC and a Minnesota Housing Monthly Payment Loan with a maximum loan amount of 5% of the purchase price, or $5,000 (whichever is greater), to cover downpayment/closing costs.

Interested in applying for a loan? Contact us today

4 thoughts on “MINNESOTA DOWNPAYMENT ASSISTANCE & FIRST TIME HOMEBUYERS

  1. Choua LeMay

    My husband and I hope to buy our first home this year. My husband is a law enforcement officer. We have never owned a home. We have always rented and lived in apartments or condos. We also have one 4-year old daughter. We are ready to buy a home. Are there any help right now for first time home buyers? We have been working with a mortgage banker and have chosen our Realtor agent as well.

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