We all could use a little help now and then, especially when it comes to buying a home. Purchasing your first property is likely the biggest investment you will ever make and finding the down payment for it can be really tough.
Traditionally a 20% down payment was required, which, depending on the cost of the home, can be a large amount of money. This placed homeownership out of reach for many people.
Thankfully you can now secure a mortgage that requires a much lower down payment. Better still, programs out there can help you out with the cost of the down payment. Down payment assistance programs in Minneapolis can help make your homeownership dreams a reality. Here is how Compass Mortgage can help with that.
There are four different types of DPA programs. However, not all options are always available. It depends on which state you live in, your zip code, and where you intend to buy a home.
While the most common type of DPA is a grant, they are not always available, which means loans are also very common. There could be interest rates associated with these, either lower or higher than your existing mortgage rate, or there could be no interest applied at all.
Bear in mind that the DPA programs available can change or be removed, so make sure you keep up to date with what is offered in your area.
Minneapolis, MN DPA programs are only available if you meet the required criteria. Again, this can change slightly depending on the that you are living and moving to, but the following criteria largely remain the same:
Targeted areas have been federally identified as requiring economic stimulation. As they are keen to regenerate the neighborhood, you will often find that you are more likely to be approved for a DPA program. Furthermore, the amount you receive could be greater than if you bought elsewhere.
What you can receive is entirely down to the area where you intend to buy. Some areas give nothing at all, while others can offer you grants in the thousands. Each Minneapolis, MN DPA is unique to the individual’s circumstances.
Usually, you are allowed to allocate part of the DPA for the closing costs. Occasionally this is not the case, but that will be made clear during the application process.
It is very important to understand that you can only qualify for a DPA if you take a mortgage from an approved lender, such as Compass Mortgage. Typically, the most common types of loans will allow you to take a DPA, but always check with your lender to be sure. Loans compatible with a DPA are:
There are two Minneapolis, MN down payment assistance loan types provided by The Minnesota Housing Finance Agency (MHFA)
Speaking to an approved mortgage lender is the best way to receive reliable and up-to-date information about home loan down payment assistance.
Contact our expert team at Compass Mortgage. We are the approved mortgage specialists in your area and will show you which programs you will be able to take advantage of. If you have any questions or would like further information on any aspect of acquiring a mortgage to buy a home, we are experts in the field and look forward to helping you achieve your goal. Suddenly, home buying is within reach.