Act now! Funds are limited!
Minnesota Housing's First-Generation Homebuyer Loan Program is a downpayment and closing cost loan for first-generation homebuyers. The program offers loans up to $35,000.
The program has funding to serve approximately 1,500 eligible borrowers on a first come, first-served basis. The program will be available until funds are gone.
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 our 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.
Ready to get started?
Find a participating lender. Our network of lenders can answer questions about the First-Generation Homebuyer Loan program and its eligibility requirements.
Make sure to let the lender know you are interested in Minnesota Housing’s First-Generation Homebuyer Loan Program.
Need more time to get ready?
It’s never too early to get prepared to buy a home.
You can take a homebuyer education class or speak with a housing counselor. Visit our homebuyer education webpage to learn more today!
In connection with Single Family Division loan programs, Minnesota Housing does not make or arrange loans. It is neither an originator nor creditor and is not affiliated with any Lender. The terms of any mortgage finance transactions conducted in connection with these programs, including important information such as loan fees, the annual percentage rate (APR), repayment conditions, disclosures, and any other materials which are required to be provided to the consumer are the responsibility of the Lender.
