MN First-Generation Homebuyer Loan Program
First-Generation Homebuyer Loan Program is a down payment and closing cost loan for first-generation homebuyers. The program offers loans up to $35,000.
Who is a first-generation homebuyer?
You may qualify as a first-generation homebuyer if you and your parent(s) or legal guardian(s):
- Have never owned their primary residence (in any country)
OR - Owned a home but lost it due to foreclosure
If you do not know if your parent or legal guardian owned a home or lost it due to foreclosure, you may still be eligible for the program.
What is the first-generation homebuyer loan?
The first-generation homebuyer loan is a deferred, interest-free and forgivable loan. Half of the loan is forgiven after 10 years and the rest after 20. To be eligible for forgiveness, you must reside in the home through the forgiveness date and meet all the terms of the note.
The First-Generation Homebuyer Loan balance becomes due immediately and in full when the property converts to non-owner-occupancy or if you sell or refinance the home. Eligibility requirements include income limits, credit score minimums and completion of a homebuyer education course.
You must have a Start Up First Mortgage loan to buy your home to use the First-Generation Homebuyer Loan Program. You can use the loan for a variety of expenses, including downpayment and closing costs.
You may also be able to combine this program with one of MN Housings standard downpayment and closing cost loan programs. If eligible, you may qualify for up to $53,000 in loans for downpayment and closing cost assistance.
All program information provided on mnhousing.gov. All rates and programs subject to change at anytime without notice. Not a commitment to lend. Clients must qualify and clear underwriting requirements. Refined Lending powered by Luminate Home Loans is an authorized lending partner of MN Housing. Luminate Home Loan Corporate address 2523 Wayzata Blvd. S. STE 200, Minneapolis, MN 55405.
