Down Payment Assistance in Rochester, MN

There are two down payment assistance options in Rochester, MN.  You could qualify for down payment assistance if you are a first-time home buyer. A first-time home buyer is defined by the Minnesota Finance Agency as someone who hasn’t purchased a house in the last three years. This means that even if you have owned a house in the past you can still qualify for down payment assistance as long as you meet their definition of a first-time home buyer.

In Rochester, MN and more broadly, southeast Minnesota, you may be able to qualify for down payment assistance programs. These programs have requirement and qualification that need to be met in order to qualify. Also, you must verify that these programs are available to the lender you end up using to finance your new house.

1) Three Rivers Community Action – Down Payment Assistance

Non-profit organization that offers many services to the community. Their main services for home buyers are:

If you qualify for their down payment and closing cost program, you may be able to get up to $18,500 towards the purchase of your house. A couple things to consider are:

  • There are income guidelines based off household size that must be met to qualify for assistance.
  • These funds have a 0% interest on the loan and you don’t have to make payments  until the house is sold, refinanced, or the original loan is paid off.
  • The house must be located within the 20 counties of southeast MN
  • The purchase price of the house may not exceed. $271,000
  • Typically buyer will have to contribute $1,000 of their own funds towards down payment.

If you are interested in learning more bout this program definitely reach out as I have a lot of experience working with Three Rivers Community Action and would be more than happy to connect you with a lender who works with this program.

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2) Minnesota Housing Finance Agency (MN Housing) – Down Payment Assistance

MN Housing is a finance agency here in the state of Minnesota. They offer different down payment assistance programs not only for first-time home buyers but also for move-up buyers or buyers who are selling their house and purchasing another house.

If you qualify for the first-time home buyer deferred down payment program you can basically get up to $10,000 towards down payment assistance and closing costs. A couple of things to consider are:

  • There are income guidelines based off household size that must be met to qualify for assistance.
  • The house can be located within the state of Minnesota.
  • The purchase price of the house may not exceed $283,300
  • Typically buyer will have to contribute $1,000 of their own funds towards down payment.

MN Housing has a couple other variations of down payment assistance that would be easier to research by going to their page. However, if you are interested in their programs I am happy to connect you with a lender who works with this program.

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Conclusion

Both of the above down payment assistance programs are great for first-time home buyers needing help coming up with the down payment. You can combine both programs and possibly get up to $28,500. The most important thing to remember is to make sure you are working with a lender who knows this programs in and out. You also want to have a Realtor who works with these programs and understands how they work so that they can guide you through the home buying process.

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