The following program is available in Dakota county only
Dakota County Community Development Agency First-Time Buyer Program
The information below is for GUIDANCE ONLY.
If you have any questions about your eligibility, please contact a LOAN OFFICER for this program by clicking HERE.
ELIGIBLE AREAS – Dakota County
ELIGIBILITY CRITERIA –
- All buyers and their spouses (purchasing and non-purchasing) must be first-time buyers and must be able to permanently reside in the US.
- Buyers must live in the property they purchase as their principal residence.
- All applicants must be considered irrespective of age, race, color, religion, national origin, sex, marital status, military status or physical handicap.
- Buyers must occupy the property purchased within 60 days of closing.
DOWN PAYMENT ASSISTANCE INCOME LIMITS –
|Maximum income to receive:|
|Household Size||10% of Purchase Price, up to $10,000||5% of Purchase Price, up to $7,500||3.5% of Purchase Price, up to $7,500|
The “household” includes: (1) the mortgagor(s), (2) any person expected to both live in the residence and sign the note, and (3) any person who is both the legal spouse of a mortgagor and is expected to live in the residence.
DOWN PAYMENT ASSISTANCE – 30 Year Deferred, 0.00% second mortgage, up to $15,000. Must be used for down payment and closing cost. The second mortgage is never forgiven and must be repaid when the first mortgage is refinanced, sale, short-sale, foreclosure or if the borrower ceases to live in the property.
MINIMUM BORROWER INVESTMENT – The borrower must provide $1,000 of their own funds for the purchase of the property
FIRST MORTGAGE LOAN INCOME LIMITS – (Use only if no downpayment is used)
- 1 or 2 person households – $86,600
- 3 or more person households – $99,500
HOME ACQUISITION LIMITS –
- $285,780 for single family homes, Townhomes or Condominiums
- $398,935 for duplexes (not eligible for additional Down payment Assistance)
HOMEBUYER EDUCATION – A borrower is required to attend a 12-hour homebuyer education course from one of the education providers listed on the following web page PRIOR to closing: http://www.dakotacda.org/housing-resources/homeownership/homebuyer-education/
ELIGIBLE PROPERTY – Existing, single family homes, townhomes, FHA or Fannie Mae approved condominiums or duplexes in Dakota County. New construction eligible in certain areas. See loan officer for additional information.
FICO/DTI REQUIREMENT –
DTI – The maximum debt-to-income (DTI) ratio is 45%.
PAGE LAST UPDATED: Feb 1, 2018