First Time Homebuyer Program & Downpayment Assistance
FRAMEWORK - Online Homebuyer Education
Home Stretch® Homebuyer Education
Pre-Purchase Counseling
Homebuyers in Dakota County can now access fixed, low-interest mortgage financing along with a Mortgage Credit Certificate and up to $10,000 in downpayment and closing cost assistance through the CDA First Time Homebuyer Program.
To apply for the First Time Homebuyer Program, contact one of the loan officers on the Participating Lender List. Interested homebuyers must work with a Participating Mortgage Lender to qualify for the First Time Homebuyer, Give Yourself Credit! and Down Payment Assistance Programs. Additional lenders will be added to the list as they sign up to participate in the program.
Eligible Financing
The First Time Homebuyer Program may only be used with 30-year amortizing fixed-rate FHA or VA mortgage loans. There is NO ORIGINATION FEE charged for the first mortgage.
Interest Rate: 3.375% - Effective rate as low as 2.9% with Mortgage Credit Certificate.
Program Eligibility
- Homebuyers must be first time homebuyers or someone who has not owned a home in the last three years
- Honorably discharged Veterans are eligibile whether or not they are first time homebuyers. To be eligible, the Veteran cannot have used a similar program to purchase a home in the past
- Properties must be located in Dakota County
- Homebuyers must occupy the home as their primary place of residence after purchase
- Homebuyers must have a minimum credit score of 640
Income Limits
- 1 or 2 person households: $82,300
- 3 or more person households: $90,530
Maximum Purchase Price: $271,590 for single family homes, townhomes or condominiums
NOTE: Borrowers will pay an application fee at closing. Income and purchase price limits are subject to change.
In addition to the
low-interest first mortgage financing available through the First Time Homebuyer Program, homebuyers can take advantage of Give Yourself Credit! a mortgage certificate program that provides a federal income tax credit.
Homebuyers accessing the First Time Homebuyer Program
can also apply for downpayment assistance loans of up to $10,000 (depending on household income).
Downpayment Assistance Loan Terms
- Zero percent interest
- No monthly payments
- Loan must be repaid when the primary mortgage is paid off, the home is no longer the primary residence, or when the home is sold or refinanced. Loan can be pre-paid in full or in part at any time at 0% interest
- Borrower must contribute a minimum of $1,000 of their own funds toward the purchase of the home.
- Home must meet the minimum housing standards for FHA or VA mortgages.
Maximum Loan Amounts & Income Limits
- 10% of the first mortgage amount up to $10,000 for households with incomes at or below 50% of the area median income
- 5% of the first mortgage amount up to $7,500 for households with incomes between 51% and 80% of the area median income
- 2.5% of the first mortgage amount for households with incomes between 81% and the First Time Homebuyer Program income limits
Household
Size |
10% of First Mortgage |
5% of First Mortgage |
2.5% of
First Mortgage |
1 |
$28,850 |
$45,100 |
$82,300 |
2 |
$32,950 |
$51,550 |
$82,300 |
3 |
$37,050 |
$58,000 |
$90,530 |
4 |
$41,150 |
$64,400 |
$90,530 |
5 |
$44,450 |
$69,600 |
$90,530 |
6 |
$47,750 |
$74,750 |
$90,530 |
7 |
$51,050 |
$79,900 |
$90,530 |
8 |
$54,350 |
$85,050 |
$90,530 |
All homebuyers applying for a First Time Homebuyer loan or Give Yourself Credit! must complete an approved homebuyer education course (Framework or Home Stretch) before closing on their loan.
The cost of the Framework online training is $75 per household. If the online Framework is taken, one borrower from the household may take the training, but all borrowers who will be on the mortgage must attend a free pre-purchase counseling meeting with one of the CDA's homeownership counselors.
HomeStretch costs $15 per household for Dakota County residents and $25 for non-residents.
Also available are FREE one-on-one pre-purchase counseling sessions with trained homeownership specialists. Pre-purchase sessions provide answers to questions about homeownership and a review of a household’s financial situation to help develop a plan to become a homeowner.
To apply for the First Time Homebuyer Program, contact one of the loan officers on the Participating Lender List. Interested homebuyers must work with a Participating Mortgage Lender to qualify for the First Time Homebuyer, Give Yourself Credit! and Down Payment Assistance Programs.
Questions? Call 651-675-4442.
Purchasing a home may be one of the biggest decisions you will ever make, and navigating today’s housing market can seem impossible. Homeownership education is the single most effective tool for achieving successful homeownership. Informed homebuyers are successful homeowners.
FRAMEWORK is a high quality, fun way to learn how to be a smart, confident, and successful homeowner.
It provides the facts you need to become well-informed about every step in the process.
Many lenders have approved Framework to meet their requirements for homebuyer education. Check with your lender to make sure online homebuyer education is accepted.
Visit FRAMEWORK to get started.
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To learn more about FRAMEWORK, watch this short overview video.
Purchasing a home may be the biggest investment you ever make. The first step in making a sound investment is to learn about the homebuying process by attending Home Stretch.
Home Stretch teaches homebuyers about the entire homebuying process and the responsibilities of homeownership. Topics covered include: Budgeting and Credit Issues, Financing and Qualifying for a Home, Shopping for a Home, The Purchase Process, Closing on a Home and Life as a Homeowner.
Home Stretch is taught by professionals in the homebuying field including a certified Home Stretch educator, mortgage lenders, realtors and home inspectors.
The Dakota County CDA holds Home Stretch classes monthly and is a HUD-Approved Housing Counseling Agency. Upon completion, participants receive a Home Stretch certificate.
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May 23, 28, 30 |
6 - 9 p.m. |
Closed |
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June 22 |
8 a.m. - 4:30 p.m. |
Open |
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July 18, 23, 25 |
6 - 9 p.m. |
Open |
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August 15, 20, 22 |
6 - 9 p.m. |
Open |
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September 14 |
8 a.m. - 4:30 p.m. |
Open |
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October 17, 22, 24 |
6 - 9 p.m. |
Open |
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November 14, 19, 21 |
6 - 9 p.m. |
Open |
The cost to attend the class is $15 per household for Dakota County residents and $25 per household for non-residents. Home Stretch is held at the CDA office at 1228 Town Centre Drive, Eagan, MN 55123.
Pre-registration is required either by phone or online.
To register by phone, contact Shannon Gerving 651-675-4472 or Kevin Knase at 651-675-4473.
For a list of other metro area Home Stretch class dates, visit the Home Ownership Center's Web site at www.hocmn.org
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The CDA's Pre-Purchase Counseling services provide free individual counseling to Dakota County homebuyers and can be accessed anytime during the homebuying process, whether you are buying a home now or in the future.
This program assists homebuyers in creating a plan to become successful homeowners. The plan may include: credit repair, creating a household budget in order to save for a downpayment on a home, identifying mortgage loan products that best meet the household's needs and/or examining and answering questions about loan documents.
If you have questions about the homebuying process or would
like to schedule a Pre-Purchase Counseling appointment, contact Shannon Gerving at 651-675-4472 or Kevin Knase at 651-675-4473.
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