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Hennepin County First-Time Home Buyer Programs
Hennepin County First-Time Home Buyer Programs
Hennepin County’s first-time home buyer programs operate on a first-come, first-serve basis. Home buyer assistance programs funded directly by Hennepin County are currently not available. For more home buyer assistance options (including down payment and closing costs) contact us today!
HOME Investment Partnerships Program (HOME) Grant
HOME Investment Partnerships Program (HOME) Grant
The HOME Investment Partnerships Program (HOME) is a flexible federal grant program that allows Hennepin County to fund affordable housing activities for low-income families or individuals, homeless families, and persons with special needs.
HOME Investment Partnerships Program (HOME) assistance can be provided to eligible home buyers for acquisition only, acquisition/rehabilitation or new construction of homes. All HOME funds used for home ownership assistance must benefit homeowners whose family income does not exceed 80 percent of the area median income. In addition, the assistance must meet the following requirements:
- The assisted housing must be the owner's principal residence.
- The estimated value of the property must not exceed 95 percent of the median area purchase price.
- The Participating Jurisdiction (PJ) must establish resale provisions that safeguard the property's continued affordability or recapture all or part of the HOME subsidy invested.
PJs can structure the form of financial assistance for homebuyer activities according to the particular needs of the program’s target participants. Generally, the form of assistance will include grants, deferred-payment loans, below-market-rate loans, or loan guarantees.
To review federal regulations for the HOME Program, visit U.S. Department of Housing and Urban Development (HUD).
Neighborhood Stabilization Program (NSP)
Neighborhood Stabilization Program (NSP)
NSP3
NSP3
Hennepin County has been awarded $1,469,133 of a federal HUD Community Development Grant. Neighborhood Stabilization Program 3 funds will be used in the cities of Brooklyn Center and Brooklyn Park.
West Hennepin Affordable Housing Land Trust
West Hennepin Affordable Housing Land Trust
Initial affordability is established by removing the market value of the land from the mortgage equation. A CLT typically purchases an existing owner-occupied home currently for sale and then sells just the home, and not the land, to a low-to-moderate-income household. The CLT retains ownership of the land and enters into a 99-year Ground Lease with the leaseholder-homeowner at a nominal fee.
Removing the land value from the mortgage equation reduces the mortgage, down payment and closing costs. A CLT also ensures permanent affordability of the home through two provisions found in the Ground Lease.
- A pricing formula that provides the owner with a fair amount of equity while also ensuring that the sale price for subsequent low-to moderate-income households remains affordable.
- A provision that requires the homeowner to sell either to another low-to-moderate-income household or to the CLT. In addition, the provisions ensure the home continues to be affordable with each sale.
A CLT leaseholder-homeowner receives benefits similar to non-CLT homeowners such as the ability to build equity, utilize federal mortgage interest and property tax deductions, and the ability to transfer the lease interest and home to their heirs.
The following cities in Hennepin County also offer programs for first-time home buyers:
The following cities in Hennepin County also offer programs for first-time home buyers:
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