First Time Homebuyer Program
Downpayment & Closing Cost Assistance
Home Stretch® Homebuyer Education
Pre-Purchase Counseling
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.
Current interest rate: 4.25%
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: $92,400
Maximum Purchase Prices
- $276,683 for single family homes, townhomes or condominiums
- $389,205 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 prior to loan 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.
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.
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Household Size |
10% Income Limit |
5% Income Limit |
2.5% Income Limit |
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1 |
$29,400 |
$45,100 |
$84,000 |
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2 |
$33,600 |
$51,550 |
$84,000 |
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3 |
$37,800 |
$58,000 |
$92,400 |
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4 |
$42,000 |
$64,400 |
$92,400 |
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5 |
$45,400 |
$69,600 |
$92,400 |
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6 |
$48,750 |
$74,750 |
$92,400 |
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7 |
$52,100 |
$79,900 |
$92,400 |
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8 |
$55,450 |
$85,050 |
$92,400 |
Questions? Call (651) 675-4442.
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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July 15, 20 & 22 |
closed |
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July 17 |
closed |
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August 21 |
closed |
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September 16, 21 & 23 |
6 - 9 p.m. |
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October 14, 19 & 21 |
6 - 9 p.m. |
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November 20 |
8 a.m. - 4:30 p.m. |
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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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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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