Would you like to buy a home in Minneapolis but are having trouble getting a down payment together? Have the money to put down for a home in St. Paul but can’t get approved for a loan? Two new programs announced this week are aimed at helping people buy homes in the Twin Cities.
First, the Greater Metropolitan Housing Corp. has announced a new contract for deed program that will be available to people who would like to buy homes in parts of Minneapolis and St. Paul that have seen high foreclosure rates. It is designed for potential home buyers that are finding it hard to qualify for mortgages in this tight credit market but are capable of making monthly payments. Under that program, the maximum loan will be $200,000 at an interest rate of 7.5 percent over 30 years. A balloon payment will be due after three years with the hope that the homeowner will qualify for a conventional mortgage by that time.
This loan program is available to buy homes that have been purchased, and occasionally even already rehabilitated, by the GMHC. In Saint Paul, loans will be available for homes that already have been processed in a similar manner by the Dayton's Bluff Neighborhood Housing Services. This program will only be available to people who plan on living in the home they purchase, not for home buyers seeking an investment property to rent out.
Second, Mayor R.T. Rybak has announced that Minneapolis is receiving a $1.5 million grant to help low-income people buy foreclosed homes in more than 20 neighborhoods. Starting in March, $10,000 grants will be available to home buyers, money that can go towards down payments and closing costs on foreclosed properties.
Not everyone can qualify for these grants, however. A family of four needs to make approximately $80,000 or less annually, for example. Additionally, grant recipients will need to have high credit scores and take home buyer education classes. Once the home is purchase, homeowners must live in the home for at least five years.
So there you have it, two recently announced Twin Cities home buyer programs. These aren’t the only available though. If you’re dreaming about buying your first house, the Minnesota First Time Home Buyer webpage has a wealth of information on local Twin Cities programs that may help your dream become a reality.