There are two new assistance programs available in Minneapolis for home
buyers and home owners, but act fast because they are limited in
availability and funds.
First, Neighborhood Housing Services of Minneapolis is offering home
buyers in North Minneapolis a $5,000 forgivable loan towards the down payment of a home if a purchase agreement is signed by May 31 and the
sale is closed by August 15. If the new owner lives in the home for 5
years, the interest-free loan will be forgiven. There are no income
restrictions for qualifying. Loan funds for this program are limited to
$100,000, so when it's gone, it's gone!
Second, homeowners and buyers in foreclosure-impacted neighborhoods
of Minneapolis can apply to the City’s Rehab Support Program. It has a fund of $750,000 with which to finance to complete improvements, potentially increasing the home’s market value. The pilot program offers loans of up to $20,000 at zero-percent interest. Funding the City
received from the Minnesota Housing Finance Agency will be matched
dollar for dollar by the homeowner from any other source they choose.
Approximately 50 loans will be available through this program. The
program is available to qualified homeowners and buyers in neighborhoods
where 10 percent of the housing stock is in foreclosure. Eligible
neighborhoods are: Shingle Creek, Lind-Bohanon, Webber-Camden,
Cleveland, Folwell, McKinley, Jordan, Hawthorne, Willard-Hay, Harrison
and Near North on the city’s Northside and Central and Bryant
neighborhoods on the Southside. Check out the City of Minneapolis
website to view further restrictions.
If you're a home owner or home buyer that fits these qualifications
in Minneapolis, it could be worth looking into these programs.
A new round of home buyer
programs have started or will be starting soon in the Twin Cities.
First, the Minneapolis Advantage program will help at least 200 people buy of foreclosed or vacant houses in targeted areas of the city. It offers as much as $10,000 in forgivable loans toward a down payment, closing costs or repairs for vacant or foreclosed single-family houses or duplexes.
Applicants who earn less than 80 percent of area median income ($64,720 for a four-person family) are eligible if they buy a foreclosed house or one vacant more than 30 days in these neighborhoods: Bryant, Sheridan, Lind-Bohanon, Venture Village, Whittier, Audubon Park, Holland, Phillips West, Cleveland, McKinley, Harrison, Powderhorn Park, Webber-Camden, Midtown Phillips, Folwell, Near North, Central, Willard-Hay, Jordan, Hawthorne, East Phillips or Beltrami.
People earning less than 120 percent of area median income ($97,080 for four people) are eligible for help with purchases of such houses in the above neighborhoods plus the Corcoran, Bottineau, Regina and Victory neighborhoods. Some neighborhoods are adding to the city's incentives.
Please visit the Minneapolis Advantage program website to learn more.
Next, there are two new programs to buy homes in Saint Paul
that will begin soon.
The first is the federal Take Credit program. Take Credit has a fund of $8 million worth of tax credits for qualified first-time homebuyers who purchase homes in St. Paul. It is meant to help up to 130 first-time homebuyers who meet certain limits on income and the price of the home being purchased. (I think this program applied to homes in Minneapolis, too, but the specific details for the city weren't provided - it is the Pioneer Press, after-all).
The second program is specifically for St. Paul though, and that is what is being dubbed as the...
Camden is a community in Minneapolis, covering the upper western half of the north side. Its boundaries are 53rd Avenue North to the north, the Mississippi River to the east, Lowry Avenue North to the south, and Xerxes Avenue North to the west. The community is composed of seven smaller neighborhoods. It also contains the Camden Industrial Area and the Humboldt Industrial Area, neither of which are assigned to an official neighborhood.
Cleveland - The Cleveland neighborhood can be found on the very edge of the city of Minneapolis. Its boarders extend from Dowling Avenue North to Lowry Avenue in the south and from Penn Avenue in the east to Xerxes Avenue to the west. The neighborhood is named after Grover Cleveland, who was born in 1837 and was president of the United States two times.
The Cleveland neighborhood has a suburban feel to it, despite its location in the city. The residences which can be found here are mainly single-family detached houses. Cleveland has a larger proportion of owner occupied housing than most of Minneapolis. The price of homes here also tends to be less than the median Minneapolis price.
The local neighborhood school, Lucy Craft Laney School, is a major draw for city residents. The K-8 school offers special programming for gifted and talented students, an all day kindergarten and classes in the performing arts and choir as well as Language Learner programming in the Hmong language.
Located next to the school is Cleveland Park, a vital part of the Cleveland neighborhood. Its amenities include picnic areas, a tot lot and wading pool, an arts and crafts room with regularly scheduled activities, and playing areas for basketball, baseball and softball. The facility also has meeting rooms and rest rooms available to the public.
Folwell – The Folwell neighborhood...
On April 4th of this year, the Minneapolis city council approved a new loan program for buyers who purchase a single-family dwelling, or duplex, in 18 specific Minneapolis neighborhoods. The chosen neighborhoods have experienced higher than normal levels of mortgage foreclosures. The program, named the Minneapolis Advantage loan program, offers a $10,000 zero percent interest loan that is forgivable over five years to anyone buying a home in key neighborhoods.
The loan can be applied towards down-payments and/or closing costs. The loans can also be used by the buyer to offset any repairs that will be done to the home. Any amount that is not spent must be returned and will be deducted from the loan. The Minneapolis Advantage loan does not apply for investment properties, however. Not only must you live in the home, but you must occupy it within 60 days following purchase. The loan will not accrue interest and will be forgiven at a 20% rate each year over 5 years as long as you live in the home. If the property is sold, the mortgage is paid off in full, or you move out during that 5 year period, the loan amount will become due.
which are spearheading this program include Camden, Weber, Folwell, and McKinley. These neighborhoods are already offering an additional $4,000 for homes bought in their areas. Combined, the two offers effectively offer up to $14,000 towards the purchase of a home. Harrison neighborhood also has $4,000 in mortgage assistance that can be added to the program and an additional $15,000 that can be spent towards renovation of the home, bringing the potential amount to $29,000!
Nearly anyone can take advantage of these offers. More great news? The offer is not based on any home price! Whether it’s a $150,000 home or a $350,000 home, the benefit is the same.
The City of Minneapolis intends to have the program ready in May....