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Minneapolis Advantage Loan Program

By Jeremy Redlinger

Mortgage and Lending with Guardian Financial

April 19, 2008 06:54 AM

If you are looking to purchase a home in the Twin Cities area, you may want to look in Minneapolis where the Advantage Loan Program can assist you with up to $10,000 on the purchase of a new home.

The terms of the loan include a zero percent interest rate, no monthly mortgage payment and the mortgage loan is forgivable after 5 years. The forgiveness rate is 20 percent per year, which equates to $2,000 a year. If you sale the property or pay off your current mortgage within 5 years, the remaining balance that has not been forgiven will need to paid off.

However, if you refinance within 5 years the loan can be subordinated only after the homeowners receives counseling.

A lot of neighborhoods within Minneapolis are also contributing up to an additional $4,000 to homebuyers who purchase a home within the neighborhood. These neighborhoods include The McKinley, Webber-Camden and Folwell. The city of Minneapolis is also looking for more partnerships from other neighborhoods in the city.

The loan funds can be used as a down payment towards the closing cost associated with buying a new, principle reduction, and towards repairs on the property.

To be eligible for the Advantage Loan Program includes purchasing a home in a neighborhood that has been approved by the city. The homebuyer must qualify for and receive a traditional fixed rate mortgage loan that is considered an “A” or “prime mortgage loan. The homebuyer will also need to complete homeownership counseling course through the Homestretch counseling program.