Homeownership Connection

Programs & Resources
For Homebuyers 

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

First Time Homebuyer Loan Program
Whether you are buying an existing home or building a new one - a Dakota County First Time Homebuyer Loan may help you make homeownership a reality. Homebuyers accessing a First Time Homebuyer Loan may also be eligible for Downpayment and Closing Cost Assistance (see below for details).

Program Update (1/18/08): The Dakota County First Time Homebuyer Program is currently out of funding. A waiting list has been established. If you are a buyer and are interested in getting your name on the waiting list, please contact your mortgage lender

Program Guidelines & Details:

• Loans are 30-year fixed rate mortgages and can be FHA, VA, RHS or conventionally insured mortgages.
• Income Limits are $77,600 for a one or two person household and $85,360 for households with three or more persons.
• Maximum Purchase Price = $256,080
• Eligible properties include single family homes, townhomes and condominiums located in Dakota County.
• Buyers must be a first time homebuyer or someone who has not owned their primary residence in the last three years.
• Traditional downpayment and closing cost requirements apply.
• A 1% origination fee is collected by the lender along with customary application and loan processing fees.
• Buyers must occupy the home as their primary residence after purchase.
• First Time homebuyer funds are reserved on a first-come, first-serve basis.

To apply for a Dakota County First Time Homebuyer Loan, you will need to contact a participating mortgage lender. The lender will review your income and credit history to determine whether or not you will qualify for the loan.

Participating Lenders (click on bank name for contact info):

Entire Participating Lender List (pdf)

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Downpayment & Closing Cost Assistance Program
In addition to mortgage financing, eligible buyers using a Dakota County First Time Homebuyer Loan can access funds through the CDA's Downpayment and Closing Cost Assistance Program to help with the initial costs of owning a home. The CDA offers two types of downpayment and closing cost assistance. Each may be used individually or in combination with each other.

Option #1: 4% Grant
In exchange for a different interest rate, buyers may receive 4% of their mortgage loan amount in the form of a grant to be applied towards downpayment and/or closing costs.

For grant assistance, there are no additional income limit requirements outside the established income limits for the First Time Homebuyer Loan Program. In addition, there is no obligation for the borrower to repay the funds beyond paying the different interest rate on the mortgage loan for as long as it is outstanding.

Option #2: Loans
In addition to grant assistance, income eligible buyers may access downpayment and closing cost assistance loans of up to $10,000. These loans are zero interest, deferred loans that are paid back at the end of the 30-year mortgage term or when the home is sold or refinanced. Eligibility is based on the buyer's gross household income adjusted for family size and the successful completion of a Housing Quality Standards Inspection.

Downpayment & Closing Cost Loans Income Limits

Downpayment and closing cost assistance funds are reserved on a first-come, first-serve basis. At the time you apply for a First Time Homebuyer Loan through a participating mortgage lender, you will also apply for downpayment assistance.

Home Stretch® Homebuyer Education Program
The Home Stretch Program teaches potential homebuyers about the entire homebuying process and the responsibilities of homeownership. Topics covered in these monthly seminars 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.

Homebuyer education is taught by professionals in the homebuying field. The classes are held from 6 to 9 p.m. each night and you must attend all three nights to complete the class. The cost to attend the class is $15 per household for Dakota County residents and $25 per household for non-residents. 

2008 Class Schedule

April 17, 21 and 24
May 15, 19 and 22
June 12, 16 and 19
July 10, 14 and 17
August 14, 18 and 21
September 11, 15 and 18
October 16, 20 and 23
November 13, 17 and 20

Pre-registration is required either by phone or online. To access the online registration form, click on the following link:

For more information or to register by phone, contact the CDA's Homeownership Coordinator Rachel Smith at (651) 675-4471.

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Pre-Purchase Counseling Program
The CDA's Pre-Purchase Counseling Program provides 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 session, contact the CDA's Homeownership Coordinator Rachel Smith at (651) 675-4471.

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