These programs are available for homebuyers purchasing in the city of Minneapolis.

Minneapolis Advantage

The City of Minneapolis has created the Minneapolis Advantage Program to help potential buyers purchase a home in areas challenged by foreclosure and bring people back on the blocks. This program (including both the Federal Home Bank Loan and Local programs) offers 25 loans at $8,000 each that can be used to pay for closing costs or downpayment. Loans will be paid on a first come first serve basis.

Loan Terms

This is a zero percent interest loan with no monthly payment. Every month, 1/60 of the loan will be forgiven for five years, at which time the entire loan is forgiven. Prior to the end of the fifth year, the portion of the loan that has not yet been forgiven if the property is sold, is no longer the primary place of residence, or if the primary mortgage matures. it must be replaced.

Eligible buyers 

Buyers must qualify for and receive a traditional fixed rate first-mortgage loan or pay with cash, and meet the income requirements for one of the following two programs. The borrower must also complete homeownership counseling through the Homestretch counseling program sponsored by the Minnesota Home Ownership Center.

Minneapolis Advantage Program – Federal Home Loan Bank - (Currently this program is un-funded)

If your income is less than $64,720 (less than 80% of the area median income), you may qualify for this program. This program has $1,500,000 available for loans.

Minneapolis Advantage Program – Local

If your income is less than $100,680 (less than 120% of the area median income), you may qualify for this program.

Eligible Properties 

a) A single family or duplex proeprty located in a neighborhood that has been approved for this specfic funding by the City (see exhibit A attched for a list of neighborhoods.

b) The property must meet one of the following three criteria

i) The property to be purchased must be either a sigle family detached home or a duplex that is in foreclsed status, or was a foreclosed property that ahs been purchase by a non-profit for the purpiose of selling it to an owner-occupant. "Forclosed status" includes properties that have had a sheriff's sale and short sales.

2) Propety on the Minneapolis 249 vacant and boarded buildings list.

3) New Construction proepties are NOT eligible

c) There is no purchase price limit

d) The homebuyer must occupy the within 60 days following the hoe purchase closing.

e) Property must also be in one of the following approved neighborhoods.

Neighborhoods

*This summary is intended for informational and educational purposes only; other terms, requirements and guidelines may apply. Many of these programs have subsidy recapture requirements, and are only available through approved lenders. Many programs require homebuyer education classes for first time homebuyers.  This document is not intended to be an offer of commitment of any kind, including but not limited to: an offer to extend credit, commitment to lend, or an offer to lock into an interest rate. Any such offer can be made pursuant to MN statute § 47.206, subdivision 3 and 4. Any interest rates, fees, and terms presented are for illustrative purposes only and may not be currently available as these programs are subject to change without notice, and are operated on a first come first serve basis.