How to Buy Real Estate If You Are a First Time Homebuyer

If you are currently a renter in Minnesota or haven't owned a home in the past three years, there are some programs available for you. These programs are ideal for long time renters, first time homebuyers, or single mothers that have moved out of the family home and have spent the last three years renting.

There are online websites available for researching in Minnesota and other states. A good first site to check in Minnesota is at the Hennepin County website.

This site details Minnesota's Housing Finance Information including the First Time Homebuyer Loan Program. To qualify, you must be a first time homebuyer (or not have owned a home in the past three years), meet the requirements for income and home purchase price limits, and have acceptable credit. Home price limits are currently $298,125 in the 11-county Twin Cities metro area, and $237,031 in the outstate area. The Minnesota Housing Eligibility Income Limit for a 1-4 person Household is currently $63,000/year. Other income levels for different household sizes are shown at the website.

If you meet those qualifications, you can research other programs such as the Homeowners Assistance Fund, which helps low to moderate income first-time homebuyers who qualify for a Minnesota Housing Loan, to purchase a home by offering interest free and deferred loans to help with down payment and closing cost. One loan program offers optional 40 year loan terms which will make your monthly payment lower.

Borrowers are eligible for assistance if they meet ONE of the following criteria:

Borrowers eligible for the CASA program (Community Activity Set Aside Program), Single Headed Households, Households of color or Hispanic ethnicity, Households containing persons with a disability, Borrower purchasing in a low-income census tract, Household earning 60% (or less) of median income.

Besides the state programs, there are also numerous county and city level programs. There is a good list at the MHFA website.

For example, in Ramsey County (which includes St. Paul), the "First HOME Buyer Assistance Program" provides down payment assistance through local financial institutions. Contact 651-266-8000 for more information. In SE Minnesota, the HRA program has residential lots available at reduced costs in Kenyon, Elgin and St. Charles. Contact 651-565-2638 x214 for more information. In Anoka County, the ACCAP program provides down payment assistance to home buyers who have completed ACCAP's Home Buyer Education and Counseling Program. Contact phone is 763-783-4705.

There are also educational programs that can help with choosing a loan product, buying a home, and learning about the different options available for first time homebuyers. You can also check your local newspaper for Business Calendar listings which often have listings for First Time Homebuyer seminars run by real estate firms.

Take some time to explore some of these buying opportunities so you can quit renting and buy your own home. Do it now during this current buyer's market while home prices are lower than they have been in the past.