Last year at this time NeighborWorks America published the results of a study that finds 70 percent of homebuyers aren’t aware of the down payment programs available to them. And, if you think these programs are restricted to borrowers with low incomes, think again. Even those that are considered middle-income earners may qualify for some of these assistance programs.
Down payment and closing cost assistance programs are offered by the city, county, state and federal governments and they vary in how the assistance is structured. Homebuyers may be offered a loan or a grant.
The programs also vary in who they serve. Some are only for first-time homebuyers; some have income restrictions.
Most require that the borrower attend some sort of home-buying or financial counseling session. This, however, is a good thing. NeighborWorksAmerica has found that homebuyers who attend their education and counseling sessions are “one-third less likely to become 90 or more days delinquent during the first two years of homeownership than those who do not,” according to the group’s website.
Minneapolis residents are fortunate in that many neighborhood associations offer help as well.
Neighborhood-Specific Programs in Minneapolis
The following Minneapolis neighborhoods offer help:
- Powderhorn (assistance in purchasing an Emerson Townhome)
- Harrison (two programs offered)
- Shingle Creek and Lind-Bohanon (for homes in the Humboldt Greenway)
- Marcy Holmes (through the University District Partnership Alliance)
- Near North
- Southeast Como (University District Partnership Alliance)
- Ventura Village
- Willard Hay
City of Minneapolis Down Payment Assistance
Although funds are currently depleted, the City of Minneapolis and the Minnesota Housing and the Minnesota Homeownership Center teamed up to offer a program to those who hope to buy a house in Minneapolis.
This program offers up to $7,500 for help with closing costs and the down payment anywhere within city limits. The income limit is $69,280 but if you make more (up to $99,500) you may qualify for up to $5,000 in assistance.
We can let you know when they receive additional funding if this program interests you.
These are just a handful of the assistance programs for Minnesota residents. We can let you know about others and help you determine which program is best for you.