DOWN PAYMENT ASSISTANCE
WHAT ARE THE PROS & CONS OF DOWN PAYMENT ASSISTANCE?
LET US HELP BREAK IT DOWN AND SEE IF IT IS SOMETHING YOU MIGHT WANT TO DO.
Minnesota Down Payment Assistance Programs
The Minnesota Housing Finance Agency (MHFA) provides two types of down payment assistance loans to eligible borrowers:
Monthly Payment Loan
Deferred Payment Loan
WHAT IS DOWN PAYMENT ASSISTANCE?
Down Payment Assistance (DPA) offers a strategic solution for prospective homeowners, enabling them with loans or grants to diminish their upfront payment. Geared to the local landscape, these programs are prolific across the nation with over 2,000 distinct options available. By tapping into DPA, buyers can unlock potential savings amounting to thousands.
How Does Down Payment Assistance For Homes Work?
Down Payment Assistance helps homebuyers with receiving grants or low-interest loans, reducing the amount of money they need to put down for a down payment. In some cases if you qualify, you could possibly receive a grant or a low-interest or no-interest loan to cover your down payment. As for closing costs, some down payment assistance funds can be used for them.
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Many down payment assistance programs require that you are a first time home buyer, repeat home buyer (meaning if you haven’t owned a home in 3 years), have a credit score of 620 or higher and a low to moderate income.
Types of down payment assistance programs:
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Grants
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Loans
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Deferred loans
Forgivable loans Typical requirements how to get down payment assistance:
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First-time home buyers
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Buyers must have low- to moderate-income
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The home will be a primary residence
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The home is within local purchase price limits
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The down payment assistance is used in conjunction with an approved mortgage program
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You work with an approved mortgage lender