Mortgages In Minnesota
If you remember that period in our country’s history when zero-down and no-doc mortgages were all the rage, you no doubt also recall the aftermath of all that freewheeling lending. Because of the housing market implosion, lending standards became stricter and no-down payment loans morphed into dinosaurs.
Slowly, with the changes in lending laws that make these loans less risky, they’ve begun returning, mainly on the state, county and municipality levels. On a federal level, only the United States Department of Agriculture and the Veterans Administration offer mortgages with no down payment requirement.
The various local, Minnesota state and federal assistance programs vary in the type of help they offer. It may come in the form of a loan or grant that won’t need to be repaid.
Minnesota No Down Payment Mortgages
We always recommend starting with the Minnesota Housing Finance Agency. They offer several programs, even one for current homeowners and repeat buyers. Start Up is their first-time buyer program and offers up to $7,500 to help with the down payment and closing costs. The Step Up program is for the repeat homebuyer. Both programs require a credit score of 640 or more and they have income qualifications.
County No Down Payment Programs
While counties don’t offer mortgages, they occasionally offer help with the down payment, thus making your mortgage essentially a zero-down (out of your pocket) loan. Down payment assistance programs come and go at the county level, based on funding. When the money runs out, the programs end. Sometimes they reappear the following year, sometimes they don’t.
Feel free to contact the Kris Lindahl Team to learn about the down payment assistance programs in your Minnesota county.
City-Level Down Payment Assistance In Minnesota
You may have better luck at the city level when searching for help to get rid of the need for cash when you buy a home in Minnesota. Most of these programs are for first-time buyers (anyone who hasn’t owned a home within the past three years). The most important thing to know about these programs is that, as mentioned earlier, they have limited funds and you’ll need a signed purchase agreement to get your hands on your share.
Minnesota Neighborhood Down Payment Programs
Minneapolis and Saint Paul are full of neighborhood-specific down payment assistance programs. Minneapolis neighborhoods that offer programs, for instance, include (among others) Ventura Village, Sheridan and Central. Don’t let a lack of cash stop you from buying a house in Minneapolis. There are many programs available to help folks just like you.
Contact us for a complete list.