Dakota County Home Ownership Connection

If you are a first time homebuyer looking to purchase a home in Dakota County you might want to look into programs offered by the Dakota County Community Development Agency.  Their Home Ownership Connection program provides Downpayment and Closing Cost Assistance to first time homebuyers that qualify.  In other words, Dakota County will loan you up to $10,000 to cover your closing costs under this program. 

Usually, a First Time Homebuyer is using FHA financing as must come up with 3.5% of the cost of the home as a downpayment.  On a $200,000 home this is $7,000.  With this program a buyer who qualifies might need as little as $750 as a downpayment to buy a home.  For those that act quickly, it can be combined with the Federal $8,000 Tax Credit which expires on April 30, 2010.

Who Qualifies For this program?

• 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.

What are the Primary Benefits?

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.

The Home Ownership Connection program has a number of upcoming free seminars that explain more about how to take advantage of this.

Home Ownership Connection also has programs for existing homeowners around Mortgage Foreclosure Prevention, Home Improvement Loans and Energy Assistance.

For more information on how to use these programs or assistance in searching for a home please contact me for assistance - Contact Bill Wallace