5 First Time Home Buyer Programs in the Twin Cities

A decision to buy a home in the Twin Cities is impressive and one you won’t regret.

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The most prominent purchase you’ll ever make is your first home. It’s an investment for your future, and you’ll spend years in your new house. Finding the right home accompanied by a loan that has mortgage and interest rates that are right for you is critical to your decision.

If this is your first time buying a home, you could qualify for first time home buyer programs. These programs exist specifically for buyers who are new to the market and are there to give you a good head start on your purchase. Most of these programs are here in conjunction with others to provide you with the most funding to make your first purchase. Several offer assistance with closing costs and down payments. There are currently five programs for new buyers in the Minneapolis-St. Paul area.

Twin City Lending would love to assist your search for the loan that’s right for you. Mortgage reviews are free. We want to get to know you and your needs. Don’t hesitate to contact us for any questions you have about first time home buyer programs in the Twin City area.

1. Start-Up Program

Home Front

This program exists for first time home buyers and offers affordable interest rates to assist with down payments and closing costs. To qualify for this program, first-time buyers must maintain a credit score of 640, meet specific income requirements, and be able to obtain a mortgage from a lender. Qualified buyers may be able to receive down payment assistance and a mortgage certificate. Borrowers are also required to attend a home buyer education course. Contact Twin City Lending to discuss your mortgage options and take steps towards your future today.

2. Step Up Program


Not to be confused with the Start-Up Program, this one gears toward homeowners who want to refinance their home. This loan promotes affordable interest rates along with reducing or eliminating mortgage insurance costs. In some cases, borrowers must attend a home buyer education course. They must also hold a credit score of at least 640 and meet income guidelines. Twin City Lending is a lender local to the Minneapolis-St. Paul area that is waiting to provide you with information and assistance for refinancing your home.

3. Mortgage Credit Certificate Program (MCC)

Loan Process

This program can be a handy gem for first time home buyers. The program allows homeowners to claim 35% of their mortgage loan interest on their federal taxes each year. This deduction can provide savings up to $2,000.

Buyers use the certificate with a Minnesota Housing mortgage, Monthly Payment Loan, and the Start-Up Program. The Mortgage Credit Certificate Program is for first time home buyers or someone who has not owned a house in the last three years and is not currently displaced by a divorce.

There are numerous qualifications for this program. Buyers must be able to receive a mortgage on a house and meet the income limits specified. They must also plan to use the property as their primary residence and have a federal income tax liability.

4. Monthly Payment Loan


This program exists to help the first time home buyers afford the costs of purchasing a home such as down payments and closing fees. A monthly payment loan is available through Minnesota Housing to assist with 5% or $5,000; whichever is greater. This money is meant to go towards closing costs or a down payment.

Borrowers must also get a Minnesota Housing first mortgage as well. This mortgage can be either the Start-Up, Step Up, or Mortgage Credit Certificate programs. The loan term is for ten years and comes with a loan interest and mortgage payments equivalent to that of the first mortgage. Contact Twin City Lending to talk about your options for a mortgage in addition to the monthly payment loan.

This program requires attendance to a home buyer education course, and the borrower must pay one percent or $1,000 of the purchase price of the property. Borrowers must also have and maintain a credit score of at least 640, meet the specified income requirements, and commit to a ten-year term limit with monthly payments.

5. Deferred Payment Loan

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This loan eases the cost of homeownership for first-time buyers. Borrowers have two options for loans which are the deferred payment loan and the plus loan. The deferred payment loan funding begins at $5,000 to $7,500. The plus loan allows a higher limit at $10,000.

To be eligible for the Deferred Payment Loan, buyers must attend an education course and have a minimum credit score of  640. The loan term is equal to the mortgage, and it has zero percent interest. When the property sells, is no longer where the homeowners live, or the owners refinance the home, they will then repay the loan.

Twin City Lending can provide you with more information about this loan and the mortgage you need to get started.

Twin City Lending and First Time Home Buyers

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Twin City Lending specializes in low-interest home purchase and refinance loans. We are located in Northfield, Minnesota and are waiting to speak with you about your wants, needs, and options today. If you are a first-time home buyer, we can provide you with information about the programs listed above and options for your mortgage loan on the house of your dreams located in the Minneapolis-St. Paul area. We offer mortgage reviews at no cost to you. Contact us today and begin the journey towards home ownership.

As a first-time home buyer, loans and programs can be confusing because you’re not sure what to expect. You want to receive the most funding for the purchase of the home you’ve dreamed of all your life but, finding and qualifying for different programs can be a hassle. That’s okay; Twin City Lending is here to answer your questions and assist you in obtaining a mortgage and funding for the purchase of your new home.

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