[DEV] Live Minneapolis - Saint Paul

CityLiving Program

CityLiving is a program sponsored by the Cities of Minneapolis and Saint Paul that provides mortgage financing and also offers special assistance for down payment and closing cost. The program is restricted to first-time homebuyers (which means they have not owned the house they have lived in over the past three years), unless the house is located in a target area* (A participating lender will be able to determine whether the house is in a target area based on the census tract.) or unless one of the borrowers is qualified veteran. Purchase price and income limits apply. Click here to see a list of participating lenders. Detailed information available online at: http://cityliving.org/

For information about the CityLiving Minneapolis program, call 612-673-5289 or send an e-mail to Mark Andersen.

For information about the CityLiving Saint Paul program, e-mail Maribeth Hultman or visit Saint Paul's website for additional information.

Federal Homebuyer Tax Credit

The Worker, Homeownership, and Business Assistance Act of 2009 has extended the tax credit of up to $8,000 for qualified first-time home buyers purchasing a principal residence. It also authorized a tax credit of up to $6,500 for qualified repeat home buyers.

First-time Homebuyer Tax Credit

• First-time home buyers purchasing any kind of home—new or resale—are eligible for the tax credit. To qualify for the tax credit, a home purchase must occur on or after January 1, 2009 and on or before April 30, 2010.
• The law defines “first-time home buyer” as a buyer who has not owned a principal residence during the three-year period prior to the purchase. For married taxpayers, the law tests the homeownership history of both the home buyer and his/her spouse.
• The tax credit is equal to 10 percent of the home’s purchase price up to a maximum of $8,000.
• For sales occurring after November 6, 2009, the income limit for single taxpayers is $125,000; the limit is $225,000 for married taxpayers filing a joint return.

Move Up/Repeat Home Buyer Tax Credit

• The law defines a tax credit qualified move-up home buyer (“long-time resident”) as a person who has owned and resided in the same home for at least five consecutive years of the eight years prior to the purchase date. For married taxpayers, the law tests the homeownership history of both the home buyer and his/her spouse.
• The tax credit is equal to 10 percent of the home’s purchase price up to a maximum of $6,500. Purchases of homes priced above $800,000 are not eligible for the tax credit.
• The income limit for single taxpayers is $125,000; the limit is $225,000 for married taxpayers filing a joint return.

For more information, visit the following website developed by the National Association of Homebuilders: www.federalhousingtaxcredit.com. As more information becomes available, the most reliable source will be the IRS website.

Minnesota Housing Community Activity Set Aside (CASA) program (City and State wide)

Offered by Minnesota Housing, the Community Activity Set Aside (CASA) program is a first time homebuyer loan program that helps low to moderate income Minnesotans buy a home. The affordable, low, fixed interest rates are available to eligible homebuyers through lenders participating in initiatives in several communities around the state.  Homebuyer education is required for all borrowers receiving a CASA loan. 

To be eligible, applicants must:

• Be first-time homebuyers
• Have federal income tax return copies for the last 3 years
• Have acceptable credit
• Have an income at or below prescribed Minnesota Housing income limits and want to buy a qualifying home
• Qualify as an eligible targeted market for one of the CASA Community Initiatives in either the Twin Cities Metro Area or Greater Minnesota.

Target markets include:

• Emerging Markets:  Households of Color or Hispanic Ethnicity or pilots endorsed by the Emerging Markets Homeownership Initiative (EMHI)
• Single Headed Households:  A family with one adult householder, no spouse/partner in the household, and one or more dependents in the household, and

Workforce Housing:

• New construction in Target Counties: (Anoka, Carver, Chisago, Dakota, Hennepin, Isanti, Ramsey, Scott, Sherburne, Washington, Wright)
• New construction in approved developments
• Homes sold by government or non-profit agencies
• Homes with long-term affordability including Community Land Trust and deed restricted homes
• Approved employer-based initiatives
• Neighborhood/Community revitalization efforts.

For more information, contact:

Minnesota Housing Consumer Information Line
Phone: 651-296-8215 or 1-800-710-8871
Web:  http://www.mnhousing.gov/

Minnesota Housing Homeownership Opportunity Program (HOP)

HOP provides short-term, temporary financing for the acquisition and rehabilitation of vacant properties in, or in imminent danger of foreclosure, and for properties in a foreclosure impacted area. These loans are taken out by standard first mortgage products when the rehabilitation is completed. 

Borrower Eligibility:

An owner occupant with a total income less than $93,100 and pre-approved for a first mortgage sufficient to take out the HOP loan.

Property Eligibility:

Not in mortgage-able condition and a single family detached, zero lot line town home, owner occupied duplex, manufactured home on a permanent foundation, AND be vacant as the result of foreclosure of be in imminent danger of foreclosure with a negotiated short sale or be in a foreclosure impacted area. 

Homeownership Opportunity Program (HOP) Lenders

Minnesota Mortgage Program

The Minnesota Mortgage Program (MMP) is a first time homebuyer loan program that helps low to moderate income Minnesotans buy a home. The affordable, low, fixed interest rates are available to eligible homebuyers statewide.

If you:

• Are a first-time homebuyer
• Have federal income tax return copies for the last 3 years
• Have acceptable credit
• Have an income at or below prescribed Minnesota Housing limits and want to buy a qualifying home, you may be eligible for an MMP loan.

You can find lenders here. Minnesota Housing also provides the opportunity for eligible targeted borrowers who qualify for a Minnesota Housing loan to receive an interest-free, deferred loan to help with down payment and closing costs through the Homeownership Assistance Fund (HAF).

For more information, contact:

Minnesota Housing Consumer Information Line
Phone: 651-296-8215 or 1-800-710-8871
Web:  http://www.mnhousing.gov/

Urban Indian Housing Program

MN Housing administers the Urban Indian Housing Program (UIHP) which provides homeownership opportunities by offering low, fixed interest rate mortgages to low to moderate income American Indian families purchasing their first homes in the following urban areas of Minnesota:  11-County Metro Area (which includes: Anoka, Carver, Chisago, Dakota, Hennepin, Isanti, Ramsey, Scott, Sherburne, Washington and Wright counties), Duluth and Bemidji.  Recipients of a UIHP mortgage must complete first-time homebuyer education.  Income and home price restrictions apply.  Visit the UIHP website for more details.

For more information, contact:

Minnesota Housing Consumer Information Line
Phone: 651-296-8215 or 1-800-710-8871
Web:  http://www.mnhousing.gov/

TakeCredit!! First Time Home Buyer Mortgage Credit Certificate (MCC) Program

Offered through Minneapolis and Saint Paul’s “City Living” programs, the MCC is a 20% federal income tax credit that can be used toward the amount of taxes owed. 

Example:

Loan Amount: $175,000
Interest Rate: 5.5%
First-Year of Interest Paid on conventional 30-year mortgage: $9,566
Multiply 20% MCC credit rate to interest paid …
$1,913 is the approximate amount of the mortgage tax credit

Eligible applicants must be first-time homebuyers (someone who has not owned, or been included on a title to a property in the last 3 years); income restrictions and purchase price ceilings apply; and applicants must be able to qualify for a mortgage.  Applications can be made through a participating lender.  There is a one-time program participation fee of $575.

For more information, please contact a participating lender.  For a list of participating lenders, visit: http://www.cityliving.org/

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