Editor's Note: The following is a press release from the Dakota County Community Development Agency.
Homebuyers in Dakota County can now access fixed, low-interest mortgage financing along with a Mortgage Credit Certificate and up to $10,000 in downpayment and closing cost assistance through the reloaded Dakota County Community Development Agency’s First Time Homebuyer Program.
There will be approximately $30 million in first mortgage financing available along with a mortgage credit certificate option that will help about 200 households achieve homeownership.
The current interest rate is 3.25 percent.
First time homebuyers or households that have not owned a home in the last three years can use this financing with 30-year FHA or VA loans. Single family homes, townhomes or condominiums in Dakota County are eligible for the program with a maximum purchase price of $276,683. Income Limits are $83,900 for a one- or two-person household and $92,290 for a three or more person household.
Along with the first mortgage financing, homebuyers can elect to apply for a mortgage credit certificate through the Give Yourself Credit! program. This certificate provides a federal income tax credit equal to 35 percent of the annual interest paid on the loan and helps reduce the amount of federal income tax the households is required to pay. This helps free up income to make homeownership more affordable.
Downpayment and closing cost assistance loans are also available and amounts vary based on income. These loans feature zero percent interest and are deferred until the first mortgage is paid off, when the home is sold or refinanced or when the home is no longer the buyer’s primary residence.
Buyers accessing the First Time Homebuyer Program must complete an approved homebuyer education course before closing on their loan. The Dakota County CDA offers monthly Home Stretch® homebuyer education workshops and the new online homebuyer education program called FrameworkTM.
The Dakota County CDA has been providing first time homebuyer loans when funding is available since 1986. Since then over 5,400 households have utilized the program. The
Dakota County CDA partners with the local mortgage lending community to administer the program. Participating lenders have all of the paperwork to qualify households for the first time homebuyer financing, mortgage credit certificate and downpayment assistance.
These programs are part of the Dakota County CDA’s Homeownership Connection resources that provide homebuyers and homeowners tools to be successful. For more information visit www.dakotacda.org or call 651-675-4442.