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MN Down Payment Assistance Programs

Tuesday, October 19th, 2010

As a first time home buyer, you are probably looking for assistance where you can pay a reduced amount for the potential property, or you will know exactly what to do to get your dream home in Minnesota. The MN Down Payment Assistance programs can provide you just that. The programs are designed to make home-buying easy and affordable for first-timers.

There are two types of MN Down Payment Assistance Programs: one is the Charity/Not-for-Profit 501c3, which can be utilized even for those who are not first-time home buyers, and the other one is purely for first-time home buyers.

The first type has to do with the seller’s contribution, which can be utilized as down payment assistance to the borrower, or as donation/charity. Such contribution should be equal to the gifted amount. An administrative fee will also be deducted based on this amount.

The contribution of the seller will simply be deducted from the proceeds and will be wired to the donation as reflected on the Not-for-Profit 501c3. This has a lot of issues that is why this program did not work well and was banned by the government in 2008.

The other type, which is exclusively for first time home buyers, has nothing to do with the seller’s contribution. A borrower can use one of these down payment assistance programs based on the qualifying family income.  The stipulated income differs according to the number of dependents and the median income in Minnesota, where you intend to purchase a home.

So the first requirement to qualify for the MN down payment assistance programs is to meet the median income of your location. Second, you must be able to qualify for a low interest mortgage loan as determined by the lender. And third, you should not have been an owner of a home for the past 3 years.

Even if you do meet the above requirements, there are other possible reasons why you still cannot use the MN down payment assistance programs. It could be because of:

  • default in government loan, whether current or history
  • presence of tax liens that are current
  • 24 month old discharge from bankruptcy
  • current unpaid child support
  • history of a foreclosed home

If you are currently planning to buy a home as a first-timer, you can ask your real estate agent about the MN Down Payment Assistance Programs. He can determine if you qualify and can help you process the purchasing of your home in Minnesota easily.

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Minnesota Home Help

Monday, September 20th, 2010

Not all individuals have good credit. Lucky are those with good credit ratings, they can easily buy a home. But just in case you do not have good credit standing, you can get assistance in securing a home in Minnesota. The state offers a program called Minnesota Home Help which allows you to purchase a home regardless of your credit standing. Some programs are geared towards first time home buyers but you can also find ones that cater to everyone.

Credit problems can make it hard for home buyers to get approval for mortgage loan, but there are also other reasons why you won’t be able to get a home easily:

1.   You don’t have money for the down  payment

2.   You don’t have a bank account

3.   Your monthly bills are too high

4.   You have too many debts

5.   You have problems with verification of income

Fortunately, there are several Minnesota Home Help programs being offered today like the Home Ownership Assistance Program, Zero Down Payment Grant Program, 3% to 10% Down Payment Program, and Assisted Home Purchase Program. These will make it easy for you to secure a new home. You have to call the concerned government agency and inquire about a certain program that you are eligible with. After that, you can choose your home and when all legalities have been arranged, you can now move to the home.

The traditional program is focused on first time home buyers. The program includes providing financial assistance, down payment, and closing cost. Another program is aimed at individuals who can qualify for the grant money for zero down payments. This means that you can be given down payment and you don’t have to repay it.

Some programs accept minimal down payments. Based on the amount that you can afford, you will qualify to purchase a home that is worth $100,000 and higher. Individuals with bad credit can opt for the Assisted Home Purchase Program to take advantage of the credit repair services.

Another program is called Home Help and this is a funded by the federal government. The borrower will be considered to be given an interest-free loan amounting to $5,000 to $10,000. In order to qualify, you must have $1,000. To get started, you will need to contact a loan officer that represents Minnesota Housing Home Help and they will give you step by step procedure on how to avail this program. You can also contact a CDPE (Certified Distressed Property Expert) to help you on this process.

Find the assistance that you need and one that you qualify. With the Minnesota Home Help, you can get your mortgage application approved even though you do not have good credit records.

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What is a Minnesota Casa Program?

Tuesday, September 14th, 2010

This article gives you the basic information about the Minnesota CASA Program. CASA stands for Community Activity-Set Aside and this can allow individuals to own homes with the help of community partnerships. The program is focused on first time homebuyers with low or moderate income. Minnesotans now have a chance to own a new home that is affordable and with a fixed interest rate. The only way to benefit from the program is to pass the eligibility requirements.

Interested homebuyers should check with their lenders for the CASA program because not all lenders are participants of this program. Once they figure out that their lender is a participant, they should check the eligibility requirement. Here is how one knows that he or she is eligible.

1.    Must be a first time buyer of a home.

2.    Have a copy of the income tax return for the past three years.

3.    Possess acceptable credit.

4.    Earns income below the established income limit in MN and interested in ‘qualifying home’.

5.    Purchasing within CASA’s geographical service area.

The CASA funds are provided by Minnesota Housing through counties or cities where targeted population lives like single headed and emerging market households. You also need to know about the Eligible Workforce Housing and should be involved in any of these options – new construction in the targeted counties, approved developments, homes sold by the non-profit agencies or government, homes that possess long term affordability, approved initiatives, and community or neighborhood revitalization efforts.

If you want to benefit from the CASA loan, it is not required that you are a member of the population group. Your first task is to locate a lender that participates in the program. You can use the internet to locate potential lenders that can help you in securing the needed money to purchase a home.

In case you don’t have money for the down payment, you don’t have to worry because the Minnesota Housing can also help eligible homebuyers through HAFA and HOME HELP. You can own a home in no time as long as you know the available options for you. Thanks to the federal programs and community based CASA, there is hope to secure a property despite the economic problems in the past.

The official website of MN can provide you relevant information about the program. Keep in mind that first time homebuyers are the targeted applicants. If you’re one of them, you’re in luck because the CASA might just be your hope to get your first home. You must do your homework and locate potential lenders in your community to take advantage of the program today.

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Down Payment Assistance Programs

Wednesday, September 8th, 2010

If you are looking for the basic information about Down Payment Assistance Programs, you have come to the right place. First time home buyers will most likely look for this solution despite the low mortgage rates these days. The reason why a lot of people find it hard to secure their dream home is because they are not aware of this type of program and how they qualify.

The assistance program is divided into two types. The first one is the Charity/Not-for-Profit 501c3. With this type, any one can utilize of the program, not just first-time buyers. It has something to do with the contribution of the seller.

There are critical factors being considered pertaining to the seller contributions. This refers to the donation that should be made by the seller, which should be equal to the gifted amount. An administrative fee will also be deducted.

What happens is simple paper exchange. The contribution of the seller will simply be deducted from the proceeds and will be wired to the donation as reflected on the Not-for-Profit 501c3. It’s easy to get confused with this fund grants, so be very cautious.

The second type of down payment assistance program is designed for first-time home buyers. The Seller Funded assistance will not have any effect on the down payment assistance grants because it has no conditions or contribution required from the seller. The only requirement is that the buyer should have the stipulated minimum family income.  This stipulated income varies according to the number of dependents and the median income of the area where you intend to purchase a home.

Simply, to qualify for the down payment assistance programs for first time home buyer, you must meet the median income requirements determined for your area. You must also be able to qualify and for a low interest mortgage loan and have it approved by a lender. Another requirement is, as a first time home buyer, you must not have owned a home for the last three years.

Here are some factors that would disqualify you for the down payment assistance programs:

  • Income above the median requirement
  • Defaulted a government loan
  • Has current tax liens
  • Has been discharge from bankruptcy discharge that is still 24 months old
  • Has current unpaid child support
  • Previous home has been foreclosed
  • Has owned a home within the last three years.

If you want to utilize the program, you must consult with an experienced real estate agent near you. Once you qualify and have all the papers ready for the down payment assistance programs, it will be easy for you to own a new home.

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MN 1st Time Home Buyer: Take Advantage of Government Programs

Thursday, August 26th, 2010

Is it your 1st time to purchase a home in Minnesota? Then you are most likely unsure of what to look for, and anxious of how you can allot a budget for a home. As a MN 1st time home buyer, you may feel overwhelmed by the things that you need to consider in order to buy a home.

There is nothing to be worried about. The government and most real estate agents have made a way to make purchasing easy. There are programs that can assist you in buying a house for the first time. These MN housing government programs are good opportunities for mortgage companies to better serve home buyers. There are different programs with different eligibility requirements that a MN 1st home buyer can choose.

There is a program that offers private grants and Federal Grants to buyers who are eligible based on certain income level and the number of family members. Grants may be offered to lenders to encourage a short sale, or it can be offered to qualified buyers based on certain requirements.

There is another helpful program from Federal Housing Administration (FHA) which insures loans that are applied by MN 1st time home buyers. By insuring the loans, lenders can feel confident in approving loan applications. They can easily and automatically authorize the closure and underwriting of loans.

A MN 1st time home buyer with an unfavorable credit score can also take advantage of some government homeowners programs. These types of programs enable the buyer with a low credit score to apply for a mortgage loan. Just like any program, the first time buyer must pass certain qualifications, such as having a good credit record after being discharged from bankruptcy.

Moreover, there are programs that are helpful for buyers with a good credit standing. One example is the zero down payment loan from Affordable Advantage program. As the name suggests, it offers no down payment to qualified MN 1st time home buyers.

To find the most suitable program, you need to understand what you need and check your eligibility for the program. This entails time to do some research online or by contacting real estate agents who are knowledgeable about the different programs for MN 1st time home buyers.

By taking advantage of the different government programs today, and with the help of realtors who know about these programs, MN 1st time home buyers can easily purchase a home that fits their budget with less worry and uncertainty.

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