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City of Minneapolis continued
These programs are available for homebuyers purchasing homes in the city of Minneapolis.
Minneapolis City Living
First time homebuyer
Non-first time homebuyers must meet additional requirements.
Type of assistance
Reduced interest rate with grant assistance
Income limits
$62,000-$92,290
Purchase price limit
$276,870-$714,592
This program provides mortgage financing at a reduced interest rate and offers 2% or 4% grant assistance to help with down payment and closing costs. The grant does not need to be repaid, but does require that the borrower have a slightly higher interest rate. Subsidy recapture applies under this program. Call us to find out what this means for you.
Borrower Eligibility
This is a first time homebuyer program, but non-first time homebuyers may participate if they meet additional requirements. Call us to see if you qualify.
To qualify for the reduced interest rate and 2% grant assistance, borrower must complete homeownership counseling through the Homestretch counseling program sponsored by the Minnesota Home Ownership Center have an income below $62,000.
Borrowers may qualify for higher income limits if they meet one of the following requirements:
The home is in a targeted area.
The household is comprised of 5 or more people
The loan includes funds for repair or improvement of the home
The property is vacant (Must be on the Minneapolis 249 list)
The higher income limits are as follows:
Household Size
Targeted Area
Non-targeted Area
1-2 person
$92,290
$83,900
3+ person
$92,290
$92,290
Borrowers qualify for the 4% grant assistance if they meet the above requirements as well as one of the following:
The buyer has at least one dependent in the household
The home is vacant
At least $5,000 of renovation work will be done to the home
Property Eligibility
Property must be located within the city of Minneapolis and meet the following purchase price requirements:
Size
Targeted Area
Non-targeted Area
1 unit
$369,160
$276,870
2 unit
$475,695
$389,205
3 unit
$575,022
$470,472
4 unit
$714,592
$584,666
Take Credit! By CityLiving
First time homebuyer
Must be a first time homebuyer or purchase a home in a targeted area
Type of assistance
Income tax credit
Income limits
$83,900-$92,290
Purchase price limit
$276,870-$714,592
First Time Home Buyer Mortgage Credit Certificate
This is a 20% federal income tax credit that can be used toward the amount of taxes you owe at the end of each year you live in your home. Because of this credit you can increase your monthly income by amending your W-4 so there are less deductions taken out of your paycheck.
Eligible buyers
Must be first time homebuyer (has not owned a home in the past 3 years) or purchase a property in a targeted area.
Must qualify for a fixed rate conventional, FHA, VA or RHS mortgage product and not financed by a Mortgage Revenue Bond program.
Borrowers must contribute 50% of the required down payment and complete homeownership counseling through the Homestretch counseling program sponsored by the Minnesota Home Ownership Center.
Must meet the following income guidelines:
Targeted areas
Non-targeted areas
1-2 person household
$92,290
$83,900
3+ person household
$92,290
$92,290
Eligible properties
The purchase price of a new or existing single-family house, townhome, or condominium must be located within the city limits of Minneapolis and meet the following purchase price guidelines:
Property size
Targeted area
Non-targeted area
1 unit
$369,160
$276,870
2 unit
$475,695
$389,205
3 unit
$575,022
$470,472
4 unit
$714,592
$584,666
*This summary is intended for informational andeducational purposes only; other terms, requirements and guidelines mayapply. Many of these programs have subsidy recapture requirements, andare only available through approved lenders. Many programs requirehomebuyer education classes for first time homebuyers. This documentis not intended to be an offer of commitment of any kind, including butnot limited to: an offer to extend credit, commitment to lend, or anoffer to lock into an interest rate. Any such offer can be madepursuant to MN statute § 47.206, subdivision 3 and 4. Any interestrates, fees, and terms presented are for illustrative purposes only andmay not be currently available as these programs are subject to changewithout notice, and are operated on a first come first serve basis.
