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Buying a home is a big decision that takes preparation. If you haven’t bought a house before, and you live in Minnesota, you may have an opportunity to buy with some support. Two new programs offer funding to help with down payments and closing costs. Submissions have been high so far, which means applications are paused from time to time and funding won’t be available indefinitely. If you’re interested in applying, it’s important to confirm that applications are being accepted and understand the approval process when you get started. Let’s dive deeper into the steps you need to take to become a first-time homeowner!

Determine your eligibility

There are a few differences between the two programs, but to qualify for either, you and your parents or legal guardians must not have owned a home, or owned a home and lost it due to foreclosure. Your credit history must also be in good standing, which can be determined by you and your lender. There are some gross income and purchase price limits, but each of those are determined by the amount of people in your household and the county you live in. Due to the high number of applications and funding available, these programs will pause taking applications from time to time. You can talk to a Minnesota Housing-approved lender if you have questions about eligibility.

Attend a homebuyer education class

The next step in the homebuying process is to attend a homebuyer education class. The Home Stretch¹ and Framework² programs are two of the most popular options. While Home Stretch is an in-person or online class taken live, Framework is an online course taken on your own time. Some classes are offered in multiple languages, and some classes are sponsored by local businesses to take care of the enrollment fee. Each class is taught by a certified homebuyer education professional, and completion is required for mortgage loan approval through the new Minnesota programs. Check with your lender that the Framework class is accepted for your loan. Your selected course must be completed within 12 months of submitting a purchase agreement.

Get prequalified for a fixed-rate mortgage

To participate in either of these programs, qualifying for a fixed-rate mortgage is required. A fixed-rate mortgage has a set interest rate and repayment period which doesn’t change over the lifetime of the loan.

Apply for assistance

You can apply online to either program once you complete the steps above. You’ll need the certificate of completion from your homebuyer education course and your prequalified mortgage information. Applications are accepted on a first-come, first-served basis while funding is available.

Start shopping for a home

After the process is complete and if you are approved, you’ll have funds reserved for 90 days. You can then start shopping for a home! Depending on where you live, the maximum allowable purchase price will vary. The funds can be used to buy a single-family home or a two-unit home, but there are resale restrictions.

While buying a home might be the biggest purchase you ever make, there are resources to help. Be sure that the funding applications are being accepted by connecting with your mortgage lender today to start the process and make your dream a reality!