Homeownership Connection

Programs & Resources
For Homebuyers 

First Time Homebuyer Program
Downpayment & Closing Cost Assistance
Home Stretch® Homebuyer Education
Pre-Purchase Counseling

First Time Homebuyer Program
In the market for your first home? Whether you are buying an existing home or building a new one, the Dakota County CDA's First Time Homebuyer Program provides a financial resource to make your purchase successful.

All funds for the 2011 First Time Homebuyer Program have been reserved and a waiting list has been established. Please contact a participating mortgage lender for more information.

Current interest rate: 3.75%

Program Eligibility

• Homebuyers must be first time homeowners or someone who has not owned their primary residence in the last three years.
• Eligible properties include existing single family homes, townhomes, condominiums or duplexes in Dakota County.
• New construction is eligible in Apple Valley, Burnsville, Eagan, Empire Township, Farmington, Hastings, Inver Grove Heights, Lakeville, Mendota Heights, Rosemount, South St. Paul, Sunfish Lake and West St. Paul.
• Homebuyers must occupy the home as their primary residence after purchase.
• Buyers must have a minimum credit score of 620.

Income Limits

• 1 or 2 person households: $84,000
• 3 or more person households: $90,970

Maximum Purchase Prices

• $272,910 for single family homes, townhomes or condominiums
• $420,525 for duplexes (not eligible for additional Downpayment Assistance)

Eligible Financing

• The First Time Homebuyer Program may only be used with 30-year amortizing fixed-rate FHA or VA mortgage loans.

Fees & Requirements

• An application fee of $225 is paid at closing. Mortgage lenders may also charge a $150 transfer fee as part of closing costs.
• Home Stretch Homebuyer Education certificate required for all individuals on the mortgage prior to closing.

To apply, contact a participating mortgage lender. They have all the necessary paperwork to qualify homebuyers for the First Time Homebuyer Program and Downpayment Assistance.

Questions? Call 651-675-4442.

Downpayment & Closing Cost Assistance
Homebuyers accessing the Dakota County CDA First Time Homebuyer Program can also apply for downpayment and closing cost assistance loans up of up to $10,000 depending on household income.

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.
• Borrower must contribute a minimum of $750 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 base mortgage amount for households with incomes between 81% and the First Time Homebuyer Program income limits.

Questions? Call 651-675-4442.

Home Stretch® Homebuyer Education Program
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.

2012 Dakota County CDA
Home Stretch Schedule

The cost to attend the class is $15 per household for Dakota County residents and $25 per household for non-residents.

Pre-registration is required either by phone or online.

To register by phone, contact Shannon Kehoe 651-675-4472.

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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Pre-Purchase Counseling
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 Kehoe at 651-675-4472.

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