Unlock Your Path to Homeownership with

$100 MillionFirst Generation Down Payment Assistance!

Homeownership Assistance

Are you ready to make your dream of owning a home a reality? If you're a first-generation homebuyer, stepping into the world of homeownership can feel both thrilling and overwhelming. But fear not! Minnesota presents two groundbreaking programs designed specifically for you, offering financial empowerment like never before seen in the state's history.

Designed for first-time homebuyers from non-homeowning families, this initiative offers a beacon of hope for those facing financial barriers. Imagine having the chance to step into homeownership, regardless of your family's property ownership history.

But wait, there's more! These programs are not only designed to tackle but also deeply committed to diversity and inclusion. They aim to bridge the racial homeownership gap and ensure that everyone has equal access to housing opportunities. Your dreams of homeownership will no longer be held back by financial limitations or systemic obstacles.

Introducing Minnesota's First-Generation Homebuyer Programs and the First-Generation Community Down Payment Assistance Fund, meticulously crafted to guide you through every step of your homeownership journey. With these programs by your side, you can unlock the door to your dream home and build a brighter future.

Introducing Minnesota Housing's

First-Generation Homebuyer Loan Program

Minnesota Housing's First-Generation Homebuyer Loan Program, launching in spring 2024, offers financial support for first-generation homebuyers to cover down payments and closing costs without any copyright infringement concerns.

What is a first-generation homebuyer?

If you've never owned a home before, anywhere in the world, or if your parent(s) or legal guardian(s) owned a home but lost it due to foreclosure, you may qualify as a first-generation homebuyer. Even if you're unsure about your parent or legal guardian's homeownership history, you might still be eligible.

What is the first-generation homebuyer loan?

It's a deferred, interest-free, and forgivable loan. Half of the loan is forgiven after 10 years, and the remaining portion after 20 years, provided you continue to reside in the home until the forgiveness date.

You can receive loans of up to $35,000, but you must use a Start Up First Mortgage loan to buy your home to qualify for this specific program. Additionally, if you meet eligibility criteria, you can combine this program with other standard downpayment and closing cost loan options, potentially qualifying for up to $53,000.

These funds can be used for various expenses related to homeownership, including down payments and closing costs.

Why is this program different?

This program stands out from previous initiatives because it's laser-focused on providing assistance to first-time, first-generation home buyers. It's custom-made to address the unique challenges faced by individuals who lack the familial support or generational wealth typically associated with buying a home. Let's say you're ready to make a down payment on your first home, but you don't have parents or guardians who can chip in – this program is here to bridge that gap and level the playing field. Plus, it's committed to narrowing the racial gap in homeownership by offering additional support to communities that have historically faced barriers in accessing affordable housing.

How does this differ from the First-Generation Homebuyers Community Down Payment Assistance Fund?

Minnesota Housing's First-Generation Homebuyer Loan Program is distinct from the First-Generation Homebuyers Down Payment Assistance Fund. These programs cannot be used together. Both are state-funded initiatives aimed at helping first-generation homebuyers access homeownership.

What else should I know?

Worried about where you can buy with this assistance? Fear not! This program isn't restricted to specific areas, so you have the freedom to choose the neighborhood that best suits your needs and preferences. Plus, accessing the program is a breeze – it's available through any lender, so you won't have to jump through hoops to get the help you need. Imagine being able to walk into any bank or credit union and say, "I'm ready to buy my first home – can you help me?" That's the power of this program!

How do I get started?

To prepare for the program, consider:

  • Taking a homebuyer education class
  • Consulting with a homeownership advisor
  • Finding a participating lender

Introducing First-Generation Homebuyers

Community Down Payment Assistance Fund

Witness the Spectacle Unfold! Prepare to be Enchanted by the Inaugural First-Generation Homebuyers Community Down Payment Assistance Fund, Set to Grace Minnesota in 2024! This Forgivable First Generation Homebuyers Community Down Payment Assistance Fund heralds a Defining Moment in our Endeavor to Reshape the Narrative of Homeownership and Wealth Attainment.

As the Clock of Time Urges a Transformative Turn, We Announce the Arrival of a New Era in 2024. A Statewide Initiative, Painstakingly Crafted to Empower the Dreams of Countless Minnesotans, is Poised to Emerge. This Forgivable Fund, Tailored Exclusively for First-Generation Homebuyers, Embarks on the Solemn Mission of Bridging the Divide Between Aspiration and Achievement.

For Far Too Long, the Looming Shadow of Unreachable Dreams has Cast a Pall Over Our Landscape, Propagating a Legacy of Exclusion and Disparity. Now, With Unyielding Determination, We Forge a Path to Equitable Access to the Wealth-Generating Potential of Homeownership. The Emphasis on First-Generation Homebuyers is Deliberate, for They Hold the Key to Undiscovered Potential, Yet Often Find Themselves Constrained by Financial Limitations.

Let Us Embrace this Monumental Opportunity to Demolish Obstacles, to Redefine Boundaries, and to Set Sail on a Journey Towards Collective Prosperity. Together, We Shall Carve a Future Where the Dream of Homeownership Transcends the Chains of Circumstance, Where Every Minnesotan Stands Ready to Claim their Rightful Share in the Promise of Tomorrow.

How Does this Revolutionary Program Operate?

In May of 2023, the state of Minnesota ushered in a groundbreaking initiative - the forgivable First-Generation Homebuyers Community Down Payment Assistance Fund. This innovative Fund extends a helping hand to eligible homebuyers across the state by offering up to ten percent of the home's purchase price, with a maximum cap set at $32,000, in down payment assistance.

The beauty of this assistance lies in its forgiveness over time. The funds provided are structured as a zero-interest loan, which gradually dissipates over five years, contingent upon the buyer residing in the home as their primary residence.

The scope of eligible properties is wide, encompassing 1–2-unit homes of various types located within Minnesota. Whether it be standalone homes, townhomes, condominiums, co-ops, or even manufactured homes titled as real property, aspiring homeowners have a plethora of options at their fingertips. Additionally, shared equity, community land trusts, and other resale restricted purchases are also welcomed under this pioneering program.

Who Qualifies for this Unprecedented Opportunity?

To be deemed a "first-generation" homebuyer under this Fund's purview, one must meet specific criteria: either never having owned a home before, or having experienced homeownership but lost it due to foreclosure. Moreover, the individual's parent or prior legal guardian must also meet these criteria.

When applying, it is imperative that at least one buyer is a first-generation homebuyer and a resident of Minnesota. Additionally, all other buyers, known as co-borrowers, must be first-time homebuyers, signifying no homeownership within the last three years.

Furthermore, the combined income of all buyers listed on the mortgage loan must not exceed specified thresholds: $124,200 for those residing in the 11-county Twin Cities Metro area; $118,000 for residents of Dodge or Olmsted county; and $111,700 for individuals residing in any other Minnesota county.

Additionally, it is strongly recommended that the first-generation buyer on the loan, and ideally all parties involved, has completed an approved homebuyer education workshop within the preceding 12 months.

Preparing for the Journey Ahead

Embark on the path to readiness now, ensuring you are fully equipped when the First Generation Homebuyers Community Down Payment Assistance Fund launches!

Enroll in a comprehensive homebuyer education workshop to gain invaluable insights into the entire home buying process. Choose between the immersive Home Stretch© workshop, available both in-person and virtually, or opt for the convenience of the self-guided online course, Framework®. Remember, it is essential that the first-generation buyer on the loan has completed an approved homebuyer education workshop within the last 12 months.

Harness the expertise of a seasoned Homebuyer Advisor, who offers complimentary services to evaluate your mortgage readiness and chart a personalized roadmap towards successful and sustainable homeownership.

Should the need arise, avail yourself of financial wellness guidance from a Homebuyer Advisor to enhance your credit score, ensuring you secure the best possible mortgage rate when the time comes to apply.

Take proactive steps by seeking preapproval for a mortgage loan through the lender of your choice. We recommend completing this crucial step post-homebuyer education workshop, as buyers must obtain pre-approval before applying for the Fund.