The housing market in Minnesota is extremely difficult right now.
From the low supply of housing, to the ever-increasing prices of homes, first generation homebuyers face an uphill battle.
But…
Minnesota has recently introduced a program to aid first-generation homebuyers!
Minnesota’s First-Generation Homebuyer Loan Program offers a loan for up to $35,000 that goes towards down payment and closing costs. This loan is a deferred, interest-free and forgivable loan. Half of the loan is forgiven after 10 years, and the rest is forgiven after 20 years.
To qualify for this program, you and your legal guardian cannot have previously owned a home.
Some might say “But what if I owned a home, but it was foreclosed on?” Well, there’s good news! You still qualify if you or your legal guardian have owned a home and it was foreclosed on in the past.
Here is some other important information pertaining to the Program:
- You can combine this program with other programs that provide down payment and closing cost loans. You may qualify for up to $53,000 in loans for down payment and closing cost assistance! Buy a Home & Refinance (mnhousing.gov)
- To have the loan forgiven, one must reside in the home for the entire 20 years.
- Balance of the loan is due if the home reverts to non-owner-occupancy, the loan is refinanced, of if you sell the home before the 10 or 20 years are up.
- To qualify for the Program, you must have a Start Up First Mortgage loan and take a homebuyer education class.
- To get more information on the First-Generation Homebuyer Loan Program, follow this link- First-Generation Homebuyer Loan Program (mnhousing.gov)
