Forgivable First Generation Homebuyers Community Down Payment Assistance Fund

Forgivable First Generation Homebuyers Community Down Payment Assistance Fund

Coming Soon May 2024! | 👉 Get Started

Introducing the Forgivable First-Generation Homebuyers Community Down Payment Assistance Fund

In America, homeownership stands as the primary avenue through which families accumulate wealth. Yet, for too long, a significant portion of Minnesotans have found themselves excluded from this fundamental aspiration. Consequently, Minnesota grapples with profound racial disparities in wealth and homeownership, ranking among the highest in the nation.

It is imperative to break free from this entrenched legacy.

Embarking on a transformative journey in 2024, the Forgivable First-Generation Homebuyers Community Down Payment Assistance Fund emerges as a beacon of hope, poised to extend the wealth-building potential of homeownership to a broader spectrum of Minnesotans. The fund's unwavering focus on first-generation homebuyers is purposeful, recognizing that these individuals face the greatest hurdles in affording or accessing the generational wealth often relied upon to cover down payments and closing costs. 👉 Get Started

Forgivable First Generation Homebuyers Community Down Payment Assistance Fund

How Does the Forgivable First-Generation Homebuyers Community Down Payment Assistance Fund Operate?

In May of 2024, the state of Minnesota introduced a groundbreaking initiative: the Forgivable First-Generation Homebuyers Community Down Payment Assistance Fund. This innovative Fund extends crucial support to eligible homebuyers statewide by offering up to ten percent of the home’s purchase price, with a cap set at $32,000, in down payment assistance.

These funds take the form of a zero-interest loan, which is forgivable over a period of five years, contingent upon the buyer maintaining the purchased property as their primary residence. This unique forgiveness structure empowers homeowners to gradually build equity in their homes while alleviating financial burdens.

Eligible buyers are granted flexibility in their property choices, as they can utilize the assistance to purchase a range of 1–2-unit dwellings situated across Minnesota. This encompasses various housing types, such as standalone homes, townhomes, condominiums, co-ops, or manufactured homes classified as real property. Additionally, shared equity arrangements, community land trusts, and other resale-restricted purchases are all permissible under the Fund's guidelines.

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Forgivable First Generation Homebuyers Community Down Payment Assistance Fund

Who is Eligible?

For the Forgivable First-Generation Homebuyers Community Down Payment Assistance Fund, eligibility is defined as follows: "First-generation" encompasses individuals who have never previously owned a home, or those who have owned a home but lost it due to foreclosure, and whose parent or prior legal guardian likewise never owned a home or lost one due to foreclosure.

To qualify, at least one buyer must be a first-generation homebuyer and a resident of Minnesota. Additionally, all other buyers, acting as co-borrowers, must meet the criteria of first-time homebuyers, indicating they haven't owned a home within the past three years.

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

Furthermore, the first-generation buyer on the loan (although it's recommended for all) must have completed an approved homebuyer education workshop within the past 12 months.

Prior to applying for the Fund, buyers must secure pre-approval for a mortgage loan.

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Forgivable First Generation Homebuyers Community Down Payment Assistance Fund

Preparing for Homeownership

Prepare yourself now to seize the opportunity when the First Generation Homebuyers Community Down Payment Assistance Fund launches!

  1. Educate Yourself: Take proactive steps by signing up for a homebuyer education workshop. These workshops provide comprehensive insights into the entire home buying process. Whether you opt for the in-person Home Stretch© workshop or prefer the convenience of a virtual session, you'll gain valuable knowledge. Alternatively, consider the self-paced online course, Framework®, which offers flexibility to complete at your own pace. Remember, it's crucial for the first-generation buyer on the loan to have completed an approved homebuyer education workshop within the past 12 months.

  2. Utilize Homebuyer Advisor Services: Take advantage of the complimentary services of a Homebuyer Advisor. These professionals can assess your mortgage readiness and devise a personalized roadmap tailored to your circumstances, guiding you towards successful and sustainable homeownership.

  3. Enhance Financial Wellness: If necessary, work with a Homebuyer Advisor to bolster your financial health. Improving your credit score can position you to secure the best possible mortgage rate when you apply, ultimately saving you money in the long run.

  4. Secure Mortgage Preapproval: Choose a lender and seek preapproval for a mortgage loan. It's advisable to complete this step subsequent to attending a homebuyer education workshop. Remember, buyers must obtain preapproval for a mortgage loan before applying for assistance from the Fund.

By taking these proactive measures, you'll be well-equipped to navigate the journey towards homeownership with confidence and readiness.

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Forgivable First Generation Homebuyers Community Down Payment Assistance Fund

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