Remember when we busted the 20% down myth? Let's take it one step further.
Did you know Minnesota has programs that can help cover your down payment and closing costs?
A lot of buyers don't! So let's break it down.
Minnesota Housing Start Up: This is the state's first-time homebuyer program. It pairs a fixed-rate first mortgage with optional down payment and closing cost help.
First-Generation Homebuyer Loan: If you'd be the first in your family to own a home, this one is worth a look. It can provide up to $35,000, and it's forgiven over time - half after 10 years and the other half after 20.
City and county programs: Hennepin County, Minneapolis, St. Paul, and suburbs like Woodbury run their own programs too. Some can even be combined with state help.
Zillow Home Loans also just launched a new down payment assistance program.
However - it’s important to understand this is not free money!
Most of these are loans, often with no interest or no monthly payment, and some are forgivable. Each program has its own income and price limits.
What do they usually have in common? A homebuyer education class, a small amount of your own money (often around $1,000), and working with an approved lender. Zillow’s program is unique from this - (reach out to me if you have questions!)
This means your first step is talking to a lender who works with these programs. They can tell you which ones you qualify for and how they stack together.
Think you might qualify? Let's chat!
Data sources: Minnesota Housing; Minnesota Reformer, "What to know about Minnesota's new down payment assistance programs."