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Minnesota Housing

Minnesota Housing. Our Mission. Housing is the foundation for success, so we collaborate with individuals, communities and partners to create, preserve and finance affordable housing. Agenda. Who is Minnesota Housing Why Use Minnesota Housing How We Work Program B asics Questions.

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Minnesota Housing

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  1. Minnesota Housing

  2. Our Mission Housing is the foundation for success, so we collaborate with individuals, communities and partners to create, preserve and finance affordable housing.

  3. Agenda • Who is Minnesota Housing • Why Use Minnesota Housing • How We Work • Program Basics • Questions

  4. Who we are Minnesota Housing office in downtown St. Paul Minnesota’s state housing finance agency In 2018, invested more than $1.26 billion and served nearly 67,000 households More than 5,000 households benefited from homeownership and home improvement loans last year Total assets of $3.16 billion

  5. Why People Use Minnesota Housing • Downpayment and Closing Cost Loans • Exclusive Conventional Products • Access to many lenders • Social Impact • Set up for success

  6. How it Works Minnesota Housing Borrowers find a Minnesota Housing approved lender on our website at mnhousing.gov

  7. How it Works

  8. Exclusive Conventional Products For first-time and repeat buyers Fannie Mae and Freddie Mac As little as 3% down 640 credit score (varies) Reduced or no mortgage insurance options

  9. Start Up for First-Time Homebuyers

  10. Start Up ProgramEligibility Requirements • First-time buyer • hasn’t owned a home in the past 3 years • Credit and Debt-to-Income requirements • Income Limits • Home Cost Limits • Homebuyer Education

  11. Start Up Income Limits

  12. Step Up Program

  13. Step Up Benefits Refinance or purchase No first-time homebuyer requirement Monthly Payment Loan option Subordination options for borrowers with existing Minnesota Housing DPA loan

  14. Income Limits

  15. Start Up and Step Up ProgramsPurchase Price Limits $330,100 11-County Metro Area $283,300 Greater Minnesota

  16. Downpayment and Closing Cost Loans

  17. Downpayment Loans • Available with a Minnesota Housing first mortgage • Minimum borrower investment required

  18. Homebuyer Education • Required for first-time buyers • Minnesota Homeownership Center (www.hocmn.org) • Home Stretch (in-person) • Framework (online) • Local Provider • Please refer to the Homeownership website

  19. Fix Up Loan Program Affordable, fixed interest rates Higher LTV on secured loans Longer repayment terms Basic and permanent repairs Property must be owner-occupied Hire a contractor or the homeowner can do the work

  20. Rehabilitation Loan Program • Very low-income homeowners • Interest-free, forgivable loan • $0 monthly payments • Improvements to address: • Safety • Livability • Energy efficiency • Accessibility needs

  21. Homeownership Capacity Program Program Concept: Minnesota has the third highest disparity gap in homeownership between households of color and Hispanic ethnicity and white/non-Hispanics households.

  22. Our Response Created the Homeownership Capacity program in 2014 Pilot initiative targeted to low-income renters and households of color and Hispanic ethnicity What? Increase the probability of successful homeownership and household stability. How? Intensive financial empowerment and homeowner training. Who? Collaborative efforts with organizations that work closely with low-income renters and households of color who have the goal of homeownership.

  23. Program Description • Requirement: Offer financial education and one-on-one coaching to all clients. • Options: • One-on-one coaching session (in person or by phone) • Educational setting (classroom, one-on-one, or online) • If financial education is offered in a classroom or online, clients must also receive one-on-one coaching

  24. Homebuyer Education Program Overview 1:1 Homebuyer Services Financial Wellness (long-term) Homebuyer Counseling (short-term) HECM / Reverse Mortgage Counseling Foreclosure Counseling

  25. Community Homeownership Impact Fund The Impact Fund provides funding for developers and administrators of single-family, owner-occupied affordable and workforce housing activity in communities across Minnesota. Resources are available through a competitive Request for Proposal published each spring.

  26. Community Homeownership Impact Fund Eligible Applicants • Cities • Housing and Redevelopment Authorities • For-profit and nonprofit organizations • Indian tribes or tribal housing corporations • Public Housing Agencies • Joint powers boards

  27. Community Homeownership Impact Fund Income Limits Household income cannot exceed 115% of greater of state or area median. Eligible Use of Funds All projects must supply or improve owner-occupied, single-family housing and comply with Green Communities Criteria. Eligible uses are: Acquisition, rehabilitation and resale of existing housing Owner-occupied rehabilitation New construction, including demolition or removal of existing structures with rebuild Reducing interest rates on Minnesota Housing home improvement loans through a Community Fix Up Initiative

  28. Community Homeownership Impact Fund Types of Funds Available Interim Financing: A short-term, low-interest bearing loan made to assist an administrator with acquiring, demolishing, rehabilitating or constructing owner-occupied housing. Deferred Loans: Interest-free deferred loan financing is available to help eligible homeowners bridge affordability gaps not covered by first-mortgage or other funding sources. Grants: Provided on a limited basis to bridge value gaps between a project’s total development cost and its fair market value or for other eligible activities where recapture of loan funds proves infeasible or unaffordable.

  29. www.mnhousing.gov

  30. Social Media facebook.com/minnesotahousing @mnhousing linkedin.com/company/minnesota-housing-finance-agency

  31. Questions?

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