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Buying a home is a big decision that takes preparation. If you’re searching in Minnesota, you may have an opportunity to buy with some financial support. A variety of programs offer funding to help with down payments and closing costs. Let’s dive deeper into the steps you need to take to access these valuable funds!

Determine your eligibility

There are different options available depending on where in the state you want to live, as well as whether it’s your first time buying a home. Generally speaking, eligibility is determined by your income, credit history and where the home you are purchasing is located, and there are often limits on the loan amount or purchase price. 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 process is to attend a homebuyer education class, which is particularly important if it’s your first time buying. 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 often required to receive homebuying support. Check with your lender for more information on courses that might be right for you.

Get prequalified for a fixed-rate mortgage

Qualifying for a fixed-rate mortgage is required to receive homebuying assistance. A fixed-rate mortgage has a set interest rate and repayment period that doesn’t change over the lifetime of the loan.

Apply for assistance

Once you complete the steps noted above, it’s time to apply. If a homebuyer education course was required, you’ll need your certificate of completion, as well as your prequalified mortgage information. Applications are often accepted on a first-come, first-served basis while funding is available. Keep in mind that even if one program stops taking applications, there are likely other options out there that still have dollars to give. Your lender can help you identify active programs and secure assistance.

Start shopping for a home

After the process is complete and if you are approved, you’ll have funds to help you start shopping for a home! Depending on where you live, the maximum allowable purchase price may vary. There may also be some restrictions related to single-family versus two-unit homes, as well as your options to resell the property. Be sure to read your program’s guidelines carefully and ask questions if anything is unclear.

While buying a home might be the biggest purchase you ever make, there are resources to help. Connect with your mortgage lender today to learn more about what support is available and take the first step toward making your dream a reality!