Minnesota Helps First Generation Duplex Buyers

The state of Minnesota believes in homeownership for everybody. To help achieve that goal, they created Minnesota Housing’s First-Generation Homebuyer Loan Program, which offers first-time homebuyers loans of up to $35,000 to use for down payment and closing cost assistance.

Best of all, the program may be used to buy a single-family home or a duplex.

To qualify, neither the homebuyer nor their parents may not have owned a home either here or abroad. However, if they have owned a home and lost it to foreclosure, they remain eligible for the program.

What’s the catch?

Well, it is a deferred, interest-free and forgivable loan. If the duplex buyer owns the property 10 years, half the loan is forgiven, provided it is owner-occupied. And if they own it 20, the rest is forgiven if they still live there.

Of course, not everybody can live in the same place for two decades. So, if the buyer moves out, refinances, or sells the property, the total amount of the loan becomes due.

Like all programs like this, the borrower will face income limit restrictions, must have a minimum credit score, and complete a homebuyer education program. The buyer must also us a Start Up First Mortgage loan (available through participating lenders) to buy the property.

The loan may also be used in combination with one of the state’s other standard down payment and closing costs loan programs. Under certain circumstances, the buyer may qualify for as much as $53,000 in assistance!

The state has earmarked a finite amount of funds for the program this year. It is available only as long as there is money in that pool, so it’s important to act quickly.

If you’d like to connect with a lender, and or would like help finding your family’s first house or duplex, give me a call. I would be honored to help you on the your path to wealth.