First Time Homebuyer Program
In the market for your first home? Whether you are buying an existing home or building a new one, the Dakota County CDA's First Time Homebuyer Program provides a financial resource to make your purchase successful.
Current interest rate: 4.99%
Program Eligibility
- Homebuyers must be first time homeowners or someone who has not owned their primary residence in the last three years.
- Eligible properties include existing single family homes, townhomes, condominiums or duplexes in Dakota County.
- New construction is eligible in Apple Valley, Burnsville, Eagan, Empire Township, Farmington, Hastings, Inver Grove Heights, Lakeville, Mendota Heights, Rosemount, South St. Paul, Sunfish Lake and West St. Paul.
- Homebuyers must occupy the home as their primary residence after purchase.
- Buyers must have a minimum credit score of 620.
Income Limits
- 1 or 2 person households: $83,900
- 3 or more person households: $92,290
Maximum Purchase Prices
- $276,683 for single family homes, townhomes or condominiums
- $389,205 for duplexes (not eligible for additional Downpayment Assistance)
Eligible Financing
- The First Time Homebuyer Program may only be used with 30-year amortizing fixed-rate FHA or VA mortgage loans.
- Homebuyers may also utilize the one-time $8,000 federal tax credit in addition to the First Time Homebuyer Program as long as they meet the requirements and deadlines for the federal tax credit.
Fees & Requirements
- An application fee of $225 is paid at closing. Mortgage lenders may also charge a $150 transfer fee as part of closing costs.
- Home Stretch Homebuyer Education certificate required prior to loan closing.
To apply, contact a Christopher Larson. We have all the necessary paperwork to qualify homebuyers for the First Time Homebuyer Program and Downpayment Assistance.
Questions? Call (651) 387-2514
Downpayment & Closing Cost Assistance
Homebuyers accessing the Dakota County CDA First Time Homebuyer Program can also apply for downpayment and closing cost assistance loans up of up to $10,000 depending on household income.
Loan Terms
- Zero percent interest
- No monthly payments
- Loan must be repaid when the primary mortgage is paid off, the home is no longer the primary residence, or when the home is sold or refinanced.
- Borrower must contribute a minimum of $750 of their own funds toward the purchase of the home.
- Home must meet the minimum housing standards for FHA or VA mortgages.
Maximum Loan Amounts & Income Limits
- 10% of the first mortgage amount up to $10,000 for households with incomes at or below 50% of the area median income.
- 5% of the first mortgage amount up to $7,500 for households with incomes between 51% and 80% of the area median income.
- 2.5% of the base mortgage amount for households with incomes between 81% and the First Time Homebuyer Program income limits.
Household Size | 10% Income Limit | 5% Income Limit | 2.5% Income Limit | |
1 | $29,350 | $44,800 | $83,900 | |
2 | $33,550 | $51,200 | $83,900 | |
3 | $37,750 | $57,600 | $92,920 | |
4 | $41,950 | $64,000 | $92,290 | |
5 | $45,300 | $69,100 | $92,290 | |
6 | $48,650 | $74,250 | $92,290 | |
7 | $52,000 | $79,350 | $92,290 | |
8 | $55,350 | $84,500 | $92,290 |
Questions? Call (651) 387-2514.
Home Stretch® Homebuyer Education Program
Purchasing a home may be the biggest investment you ever make. The first step in making a sound investment is to learn about the homebuying process by attending Home Stretch.
Home Stretch teaches homebuyers about the entire homebuying process and the responsibilities of homeownership. Topics covered include: Budgeting and Credit Issues, Financing and Qualifying for a Home, Shopping for a Home, The Purchase Process, Closing on a Home and Life as a Homeowner.
Home Stretch is taught by professionals in the homebuying field including a certified Home Stretch educator, mortgage lenders, realtors and home inspectors.
The Dakota County CDA holds Home Stretch classes monthly and is a HUD-Approved Housing Counseling Agency. Upon completion, participants receive a Home Stretch certificate.
There is also money available in Ramsey and Hennepin County
Comments(1)