Many potential buyers are not aware that there are still programs out there that allow you to purchase a home without you having to come up with the down payment funds. The options that are available are designed to promote homeownership, but they are limited to certain areas and have specified requirements to qualify.
Rural Housing Loans are designed to promote ownership in more rural areas that are not seeing the desire that metro areas are. As a part of USDA Rural Development, the mission is to improve the quality of life in rural areas. Housing and Community Facilities Programs helps rural communities and individuals by providing loans and grants for housing and community facilities. They provide funding for single family homes, townhomes, townhouses, and condos. In Western Wisconsin all areas qualify for the program even if the property is considered in town. In Minnesota, it only qualfies for areas that are considered outside the main metropolitan area. So, if you are considering this option in MN you should search the coverage area to determine if this is a good fit for you. The program allows you to buy a home with no down payment, and the state will quarantee and fund the loan.
The City of Woodbury MN has excellent payment assistance programs, one of which does not require you to be a first time home buyer. These programs will help you with $25,000 in down payment assistance! This program works especially well with certain conventional loans to help the first time home buyer remove the need for mortgage insurance on their loan. The $25,000 is a second mortgage with a rate of 3% and the payments are interest only. The city designed this program to promote ownership and combat empty properties.
One of the best programs for down payment assistance is available in the rest of the state of Minnesota. The Minnesota Housing Finance Agency offers a great program called HAF which can help with between $3,000 and $4,500 of assistance. This HAF down payment assistance is a second mortgage on your home but has no interest and requires no monthly payments. One great thing about the HAF program is that it can be used along with many other local city or county down payment assistance programs if they are available.
Contact me to find out more about what programs fit you. There are a variety of city, county, and state programs depending on the area you are considering.
Brian Webb represents clients in Hudson, River Falls, Stillwater, Woodbury, Oakdale, Cottage Grove, and surrounding Twin Cities Areas! He assists with buying, selling, investing, and property management of your home! He offers free advice and consulting services, contact him at HomesByWebb.com.