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First-Generation Homebuyer Loan Program is Launching Soon!
We are re-sending this eNews to correct one of the virtual training dates. The April training is taking place on April 25, not April 24.
Minnesota Housing’s First-Generation Homebuyer Loan Program is scheduled to launch on May 6.
To prepare, we’re holding training sessions for lenders. The sessions will cover how to use the First-Generation Homebuyer Loan Program with our other programs, enter it into the commitment system, disclose the loan and more.
Register for a virtual training session on:
Program Materials
Visit the First-Generation Homebuyer Loan Program lender webpage for more information on the program. The webpage includes program forms, updated Start Up Manual (effective May 6, 2024), responses to frequently asked questions and other resources. We’ve also created a flyer on the First-Generation Homebuyer Loan Program.
Program Details
The First-Generation Homebuyer Loan Program offers loans up to $35,000. Borrowers are required to be using a Start Up First Mortgage loan to access the First-Generation Homebuyer loan.
Borrowers may qualify as a first-generation homebuyer if one borrower and their parents or legal guardians:
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Have never owned a home (in any country) OR
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Owned a home but lost it due to foreclosure
Is Minnesota Housing's program the same as the First-Generation Homebuyers Community Down Payment Assistance Fund?
Questions?
Document Updates - Effective 5/6/2024
To prepare for the First-Generation Homebuyer Loan Program and some additional upcoming program changes, we updated the Start Up Procedural Manual (effective date 5/6/2024) and Step Up Procedural Manual (effective date 5/6/2024).
What changed?
See Summary of Changes: Start Up | Step Up Procedural Manuals and Borrower Affidavit for a detailed overview. High level overview of changes included below.
Start Up Procedural Manual (effective date 5/6/2024) updates and additions:
- Chapter 7: First-Generation Homebuyer Loan Program as another downpayment assistance loan option
- Chapter 4: Clarified First-Time Homebuyer eligibility criteria relating to spousal ownership history and previous manufactured home ownership
- Chapter 5: Added clearer guidance on eligible property types and eligible forms of ownership
- Chapter 2: Sections on Fraud, Conflict of Interest, Suspension, and Disclosure and Reporting
Step Up Procedural Manual (effective date 5/6/2024) updates and additions:
- Chapter 5: Clearer guidance on eligible property types and eligible forms of ownership
- Chapter 2: Updated the sections on Fraud, Conflict of Interest, Suspension, and Disclosure and Reporting
Borrower Affidavit (Start Up) Update Effective 5/6/2024
- We updated the Borrower Affidavit (Start Up) to align with the Start Up Procedural Manual (effective date 5/6/2024). The updated Borrower Affidavit (version date 4/10/2024) must be used for all loans closed on or after 5/6/2024. The change will be effective in the Minnesota Housing commitment system on 5/6/2024. For lenders not generating documents from the Minnesota Housing commitment system, document managers were notified separately regarding these document changes.
What changed?
See Summary of Changes: Start Up | Step Up Procedural Manuals and Borrower Affidavit for a detailed overview. High level overview of the Borrower Affidavit changes included below.
- Updated language in section #8 related to First-Time Homebuyer eligibility
- Updated the signature section
New MPL and DLP Notes and Mortgages
Minnesota Housing is transitioning to new Note and Mortgage forms for our Monthly Payment Loan and Deferred Payment Loan programs.
What changed?
- The loan terms have not changed. The forms are now substantially similar to the notes and mortgages used by a number of Housing Finance Agencies around the country, providing more consistency across different programs.
- Added mortgage registration tax (MRT) exemption language on the mortgage
- Mortgage for purchase transactions now includes “Purchase Money Mortgage” language
When?
- Our system will transition to the new forms on April 25, 2024.
- Lenders who use their own systems must use the new forms for all loans closed on or after May 15, 2024 (and may implement before that date).
The updated forms below will be added to the Lender Toolkit on April 25, 2024:
Questions?
You can reach the Partner Solutions Team at 651.296.8215 or 800.710.8871 between 8 a.m. and 5 p.m. on business days.
About Minnesota Housing
Minnesota Housing, the state’s housing finance agency, works to provide access to safe, stable and accessible housing Minnesotans can afford in a community of their choice. In 2023, the Agency distributed $1.85 billion in resources and served 69,500 households. Visit our website to learn more.
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