Advice
Posted in: Getting a mortgage, Buying a home, First time homebuyer tips

Do you qualify for down payment assistance?

Do you qualify for down payment assistance?

Key insights:

  • Whether you’re a first-time buyer or a seasoned homeowner, you may be eligible for down payment assistance on your upcoming home purchase.
  • Both Minnesota and Wisconsin have down payment assistance programs designed to help homebuyers get the help they need.
  • Each program has different qualification guidelines, so it’s important to do your research before you apply for down payment assistance.
  • Not all lenders accept these programs. Check with your mortgage consultant to see if these down payment assistance programs are currently available.

Many would-be buyers are stopped short by one variable in the buying process: the down payment. But thanks to state-run programs in Minnesota and Wisconsin, homeownership may now be within reach for buyers who can afford a monthly mortgage payment but cannot save enough for a down payment.

Minnesota down payment assistance programs

The Minnesota Housing Finance Agency’s Start Up program offers first-time buyer loans for up to $17,000, which can be used for down payment or closing costs.

Borrowers in the Start Up program must:

  • Not have owned a house in the last three years.
  • Meet the income limits.
  • Attend homebuyer education classes.
  • Meet minimum credit score requirements.
  • Meet debt-to-income ratio requirements.
  • Plan to use the property as their principal residence.

Buyers should also avoid searching for luxury homes, as there is a home cost limit for homebuyers who take advantage of the Start Up program:

  • 11-county metro area: Home cost limit is $352,300
  • Greater Minnesota: Home cost limit is $311,900

Read the full details of the Start Up program for first-time buyers in Minnesota.

Not a first-time buyer?

If you’ve owned a home in the last three years or currently own a home, you may still qualify for down payment assistance or closing cost assistance. Check out the Step Up program, which offers loans for repeat buyers or those seeking to refinance in Minnesota.

Wisconsin down payment assistance programs

In Wisconsin, both first-time buyers and repeat buyers can apply for an Easy Close Down Payment Assistance loan from the Wisconsin Housing and Economic Development Authority (WHEDA). These loans offer funds that can be used for down payment assistance, closing costs and up-front mortgage premium payments. The minimum amount for Easy Close DPA loans is $1,000; the maximum is 6% of the home purchase price.

There are a few caveats to WHEDA’s down payment assistance program: Homebuyers who receive down payment assistance or closing costs assistance from WHEDA must take out a WHEDA Advantage home loan for their mortgage, and meet income and credit standards. Learn more about WHEDA programs here.

Where should I begin with questions on home mortgages or down payment options?

The most important thing to remember as you set out to get a mortgage loan is this: Your financial situation is unique, and you need customized help and insight in order to determine your best steps and ideal loan program.

To begin working with a home mortgage consultant, get in touch with Edina Realty today. We can start you down the right path toward responsible homeownership, no strings attached.

Edina Realty Mortgage is an affiliate of Edina Realty. See Affiliated Business Arrangement Disclosure Statement
Prosperity Home Mortgage, LLC may operate as Prosperity Home Mortgage, LLC dba Edina Realty Mortgage in Minnesota and Wisconsin. All first mortgage products are provided by Prosperity Home Mortgage, LLC. dba Edina Realty Mortgage. (877) 275-1762. Prosperity Home Mortgage, LLC products may not be available in all areas. Not all borrowers will qualify. Prosperity Home Mortgage, LLC dba Edina Realty Mortgage is licensed in Minnesota and Wisconsin. Prosperity Home Mortgage, LLC is licensed by the Delaware State Bank Commissioner. Massachusetts Mortgage Lender License ML75164. Licensed by the NJ Department of Banking and Insurance. Also licensed in AK, AL, AR, AZ, CA, CO, CT, DC, FL, GA, ID, IL, IN, KS, KY, LA, MD, ME, MI, MN, MO, MS, MT, NE, NC, ND, NH, NM, NV, OH, OK, OR, PA, RI, SC, SD, TN, TX, UT, VA, VT, WA, WI, WV and WY. NMLS ID #75164 (NMLS Consumer Access at http://www.nmlsconsumeraccess.org/) ©2022 Prosperity Home Mortgage, LLC.

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Status Definitions

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