First-Generation Homebuyer Loan Program is Now Open!
Minnesota Housing’s First-Generation Homebuyer Loan Program launched today, May 6. The program has funding to serve approximately 1,500 eligible borrowers on a first-come, first-served basis. The program will be available until funds are exhausted.
The program offers loans up to $35,000 for downpayment and closing cost assistance. Borrowers are required to use a Start Up first mortgage loan to access the First-Generation Homebuyer Loan. Start Up program eligibility requirements apply, including income limits, credit score requirements, and homebuyer education.
The loan is a deferred, interest-free and forgivable loan. Half of the loan is forgiven after 10 years and the rest after 20 years. To be eligible for forgiveness, the borrow must reside in the home through the forgiveness date and meet all the terms of the note. The First-Generation Homebuyer Loan balance becomes due immediately and in full when the property converts to non-owner-occupancy, or if the borrower sells or refinances the home.
Who is a first-generation homebuyer?
Borrowers may qualify as a first-generation homebuyer if one borrower and their parents or legal guardians:
- Have never owned a home (in any country) OR
- 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?
Minnesota Housing's First-Generation Homebuyer Loan Program is different from the First-Generation Homebuyers Community Down Payment Assistance Fund.
Borrowers cannot combine Minnesota Housing’s First-Generation Homebuyer Loan with the First-Generation Homebuyers Community Down Payment Assistance Fund. The goal of both programs is to help more first-generation homebuyers access homeownership.
The First-Generation Homebuyers Community Down Payment Assistance Fund is not yet available. Visit firstgendpa.org to stay up to date on when the First-Generation Homebuyers Community Down Payment Assistance Fund will become available.
Where can I find out more?
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.
|
