Dakota County MN First Time Home Buyer Loan Programs

Dakota County First Time Home Buyer Loan Programs
Whether you are buying an existing home or building a new one - a Dakota County First Time Home buyer Loan may help you make homeownership a reality. Homebuyers accessing a First Time Homebuyer Loan may qualify for a below market interest rate may also be eligible for Down payment and Closing Cost Assistance.

2010 Dakota County First Time Home Buyer money NOW AVAILABLE.  Apply online and be ready to go!

Up to $10,000 also available in down payment and closing cost assistance to those who qualify

Most Minnesota city, and county mortgage and down payment assistance funds are limited, and on a first-come, first-serve basis.  Contact us as early as possible in the home buying process to be sure you are qualified.  

If you have questions about the home buying process, call 651-552-3681, or APPLY online 24-hours a day via our secure application. There are no costs or obligations.  

   WE ALSO OFFER THE DAKOTA COUNTY SILVERLINING PROGRAM 

Dakota County Basic Program Guidelines & Details

• Loans are 30-year fixed rate mortgages and can be FHA, VA insured mortgages.

• Income Limits are $83,900 for a one or two person household and $92,290 for households with three or more persons.

• Maximum Purchase Price = $276,683

• Eligible properties include single family homes, town homes and condominiums located in Dakota County, Minnesota.

• Buyers must be a first time homebuyer or someone who has not owned their primary residence in the last three years.

• Traditional down payment and closing cost requirements apply.

• Home buyers must put a minimum of $750 down

• Buyers must occupy the home as their primary residence after purchase.

• First Time homebuyer funds are reserved on a first-come, first-serve basis

• Buyers MUST attend Home Stretch Home Buyer Education Classes

To apply for a Dakota County First Time Homebuyer Loan, contact a participating mortgage lender like us. The lender will review your income and credit history to determine whether or not you will qualify for the loan.

It is important that you know not all lenders are able to do MHFA, City, County, Bond loans, FHA or VA loans. We are proud to be a provider of many of these loans, including the Dakota County First-time home buyer down payment assistance program.

Knowing your full exact situation will help us determine if a government assistance loan programs are right for you. Being pre-approved also gives you ultimate buying power and the upper hand in negotiating.

Ready?   There are no costs or obligations to get started!

Down payment & Closing Cost Assistance Program
In addition to mortgage financing, eligible buyers using a Dakota County First Time Home buyer Loan can access funds through the CDA's Down payment and Closing Cost Assistance Program to help with the initial costs of owning a home. The CDA offers two types of down payment and closing cost assistance. Each may be used individually or in combination with each other.

In addition to grant assistance, income eligible buyers may access down payment and closing cost assistance loans of up to $10,000. These loans are zero interest, deferred loans that are paid back at the end of the 30-year mortgage term or when the home is sold or refinanced. Eligibility is based on the buyer's gross household income adjusted for family size and the successful completion of a Housing Quality Standards Inspection.

Down Payment & Closing Cost Loans Income Limits

DPA Assistance Amounts

There are three levels of assistance, based on household income:

• Level 1. Households earning at or below 50% of median income are eligible for 10% of the base first mortgage amount, up to $10,000.

• Level 2. Households earning 51-80% of median income are eligible for 5% of the base first mortgage amount, up to $7,500.

• Level 3. Households earning more than 80% of median income up to the program limits are eligible for 2.5% of the base first mortgage amount.

Household Income Limits (These limits are determined by HUD and subject to change in March 2010). The "household" income includes all persons living in the property, regardless of family relation or whether they are a party to the first mortgage. Income from all members of the household age 18 years and older must be included when determining which level of assistance applies to the household

Down payment and closing cost assistance funds are reserved on a first-come, first-serve basis. At the time you apply for a First Time Homebuyer Loan through a participating mortgage lender, you will also apply for down payment assistance.

Home Stretch ® Homebuyer Education Program
The Home Stretch Program teaches potential homebuyers about the entire home buying process and the responsibilities of homeownership. Topics covered in these monthly seminars 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 buyer education is taught by professionals in the home buying field. Home Stretch ® is a nine-hour course that is held monthly. Either over three days from 6 to 9 p.m. each night, or an all day Saturday class. Participants must attend all three nights or the single all day session full day to complete the course. The cost to attend is $15 per household for Dakota County residents and $25 per household for non-residents.

Pre-registration is required. Call 651-552-3681 to register.

Pre-Purchase Counseling Program
The CDA's Pre-Purchase Counseling Program also provides free individual counseling to Dakota County homebuyers and can be accessed anytime during the home buying process, whether you are buying a home now or in the future. This program assists homebuyers in creating a plan to become successful homeowners. The plan may include: credit repair, creating a household budget in order to save for a down payment on a home, identifying mortgage loan products that best meet the household's needs and/or examining and answering questions about loan documents.

Eligible Properties include:
Existing single family homes, town homes, FHA approved condominiums or duplexes in Dakota County (Duplexes can be no more than 5% of the program. Duplexes are limited to existing homes that are at
least 5 years old.)

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.

Homes are considered new if never previously occupied.

If you have questions about the home buying process, call 651-552-3681, or apply online 24-hours a day via our secure application. There are no costs or obligations.