Do you qualify for down payment assistance?

Key insights:

• Both Minnesota and Wisconsin have down payment assistance programs designed to help homebuyers access financial support.
• 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.

We hear from would-be buyers all the time that they are paying more in rent than they would for a mortgage payment. The only thing that’s stopping them from owning? The hefty down payment that is required for many loans.

Thanks to state-run programs in Minnesota and Wisconsin, homeownership may now be within reach for these buyers. Read on for tips on how much is available — and how to access these programs.

Minnesota down payment assistance programs

The Minnesota Housing Finance Agency’s Start Up program offers first-time buyer loans for up to $18,000, which can be used for down payment or closing costs.

Borrowers in the Start Up program must:

• Have not owned a house in the last three years.
• Meet the income and credit score requirements.
• Complete homebuyer education classes.
• Meet owner-occupancy requirements.
• Meet purchase price limits.

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

Don’t meet the Start Up requirements?

You may still qualify for down payment assistance or closing cost assistance even if you have owned a home in the last three years or your income or purchase price exceeds the limits of the Start Up program.

In that case, 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 (DPA) loan from the Wisconsin Housing and Economic Development Authority (WHEDA). The minimum loan amount for Easy Close DPA loans is $1,000; the maximum is 6% of the home purchase price when partnered with a WHEDA Conventional First Mortgage loan.

There are a few caveats to WHEDA’s down payment assistance program: among other things, homebuyers who receive down payment assistance or closing cost assistance from WHEDA must take out a WHEDA first mortgage program loan (either WHEDA Advantage Conventional or WHEDA Advantage FHA), 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 option.

To begin working with a home mortgage consultant, get in touch with Edina Realty today. We can help you move down a path toward responsible homeownership.

Prosperity Home Mortgage is an affiliate of Edina Realty. See Affiliated Business Arrangement Disclosure Statement.