First-Generation Homebuyer Loan Program
Minnesota Housing's First-Generation Homebuyer Loan Program is a downpayment and closing cost loan for first-generation homebuyers.
Now is the time to get ready!
To prepare for the program, you can:
- Take a homebuyer education class
- Speak with a homeownership advisor
- Find a participating lender
Who is a first-generation homebuyer?
You may qualify as a first-generation homebuyer if you and your parent(s) or legal guardian(s):
- Have never owned their primary residence (in any country)
OR - Owned a home but lost it due to foreclosure
If you do not know if your parent or legal guardian owned a home or lost it due to foreclosure, you may still be eligible for the program.
What is the first-generation homebuyer loan?
The first-generation homebuyer loan is a deferred, interest-free and forgivable loan. Half of the loan is forgiven after 10 years and the rest after 20. To be eligible for forgiveness, you must reside in the home through the forgiveness date.
The program offers loans up to $35,000. You must be using a Start Up First Mortgage loan to buy your home to qualify for the First-Generation Homebuyer loan.
If you meet eligibility requirements, you could also combine this program with one of our standard downpayment and closing cost loan options. If eligible, you can qualify for up to $53,000.
You can use the loan for a variety of expenses, including downpayment and closing costs.
Is this the same as the First-Generation Homebuyers Community Down Payment Assistance Fund?
Minnesota Housing's First-Generation Homebuyer Loan Program is different from the First-Generation Homebuyers Down Payment Assistance Fund.
The programs cannot be used together. Both are funded by the state, and the goal of the programs is to help more first-generation homebuyers access homeownership.
A homeownership advisor can help you determine which program is best for you. Find a homeownership advisor.
In connection with Single Family Division loan programs, Minnesota Housing does not make or arrange loans. It is neither an originator nor creditor and is not affiliated with any Lender. The terms of any mortgage finance transactions conducted in connection with these programs, including important information such as loan fees, the annual percentage rate (APR), repayment conditions, disclosures, and any other materials which are required to be provided to the consumer are the responsibility of the Lender.
