Minnesota Housing raised their income limits on March 1, 2010 for buyers using their Minnesota Mortgage Program. In the past the income limit was set at 80% of the median income (which put it at $67,200 for a household of 1-4 people). They are now able to do loans up to 100% of the median income for the Twin Cities. This means a first time buyer household of 1-4 people can earn up to $83,900 if they are buying in the Twin Cities metro area. If they are buying outside of the Twin Cities the limit is $72,900 (and if in Rochester it is $77,800).
The Minnesota Mortgage Program (MMP) typically has an interest rate about 0.50% lower than other mortgage rates. On a $150,000 loan a first time home buyer using this special loan from the State of Minnesota would save about $45 a month in payment. A buyer could also use this lower rate to buy about $9,000 more home for the same payment as someone not using this loan.
If you are a first time buyer in the Twin Cities you want to check with us to see if you meet all of the eligibility requirements. Don’t pay too high of an interest rate because you are working with the wrong lender.
Do you have questions about the Minnesota Mortgage Program or the CASA loan from Minnesota Housing? Send us message:
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2 Comments, Comment or Ping
Gay Wilson
Hello,
I am actually contacting you for my daughter. Here are the questions I have for you. She is just afraid and so I thought I would do some footwork for her instead of gettin her hopes up.
She would be a first time home buyer she is 31 and has a great job with the state of Minnesota.I think her income is around 45,000.00 a year gross.
She does have ssome negative things on her credit report from years and years ago. She has no loans, credit cards or any revoloving charges except fodr her student loan.
What can she do to find out if she could even qualify to buy a home. She hates renting and I understand that. She pays $1,100. a month for rent. I don’t knwo her credit score but what does that have to be? Please any information you can give me I would greatly appreciate and hopefully she can find a way to purchase a home.
Tnak you so very much,
Gay Wilson
Alec Grebis
She should start by applying at my website http://www.MNHomeLoan.com. Then I can review her credit for free and let her know where she stands. The key for credit is they want to see 3 trade lines that you have been making payments on for a minimum of 3 years. So, if she has multiple student loans she could be in good shape. As for past credit problems, the older the issue the less it matters. Time does heal wounds when it comes to credit.