CDA Releases Over $41 Million In First-Time Homebuyer Financing

People looking to buy a first home this year in Dakota County can consider applying for a First-Time Homebuyer Loan offered by the Dakota County Community Development Agency.

With interest rate of 4.99% and up to $10,000 in downpayment assistance, buyers will be able to maximize their purchasing power and at the same time have a stable, fixed rate first mortgage.

Dakota County is the only county in the state of Minnesota offering such a program this year after recieving special bonding authority from the U.S. Department of Treasury from a new program called the New Issuance Bond Program.

Interested buyers apply for the loans and downpayment assistance through qualified participating mortgage lenders (a list is available online at www.dakota.org/homebuyers.htm). Home buyers may also recieve the one-time $8000 federal tax credit for first time home buyers in addition to this program as long as they meet the requirements and deadlines for the tax-credit.

First-Time Homebuyer Loan terms and requirements are:
* Homebuyers must be first-time homeowners or someone who has not owned their primary residence in the last three years.

* Loans must be 30-year amortizing fixed-rate FHA or VA mortgage loans.

* Income limits are: One-or twon-person households: $83,900; three or more person households: $92,290

* Maximum purchase prices: are $276,683 for single family homes, townhomes or condominiums and $389,205 for duplexes (duplexes are eligible for the first time homebuyer loans, but not downpayment assistance)

Home Stretch Homebuyer Education class certificate is required prior to loan closing. Home Stretch classes are offered by the CDA and other metro area providers. For a list of CDA Home Stretch class dates, visit www.dakotacda.org/homebuyers.htm.

For more information, call the CDA's First Time Homebuyer Hotline at (651) 675-4442. Free pre-purchase counseling sessions are also available with trained CDA's Homeownership Counselors. To schedule a pre-purchase appointment call (651) 675-4472.