Minneapolis Advantage Loan Program

One of the major goals of the upcoming Northside Home Tour on May 17th is to showcase properties that are available in areas eligible for the Minneapolis Advantage Program. The program offers $10,000 loans to homebuyers for down payment or closing cost assistance when purchasing a single family home or duplex they will be occupying in specific neighborhoods. This map shows the areas included in the program, including 9 Northside neighborhoods.

The loans are available with no interest, no monthly payment, and will be forgiven over a 5 year period - 20% each year - if the homeowner remains in the home. There are no income limits and purchasers do not have to be first time home buyers. The only restrictions are on the area where a home is located, that the purchaser obtain a traditional fixed-rate mortgage or buy with cash, and in requiring that the purchaser occupy the property within 60 days of closing or completing rehab work.

In some neighborhoods, additional funds are being offered by the neighborhood associations. The McKinley, Webber-Camden and Foley neighborhoods are offering an additional $4,000 in assistance, and the Harrison neighborhood is offering $4,000 for down payment or closing costs, plus an additional $15,000 that can be used for renovation costs.

What does this mean for buyers? They have the opportunity to take advantage of this program and get into a home with little or no money down, leaving more money in their pockets as a reserve, or for use in potentially renovating or updating the homes they are purchasing.

As just one example of how this could work, there are several move in ready homes available for $130,000 throughout the Northside. If a prospective neighbor were to purchase one of these homes with an FHA mortgage, they would not have any out of pocket expense to close and would have a mortgage payment under $1,000, affordable to households making around $40,000 a year, or under 50% of the area's median income. There are several homes available at both lower and higher price points, ranging from move in ready to requiring substantial rehabilitation.

This program can also be combined with the City Living loan program, which can be used for additional down payment assistance, or to finance rehabbing the property if necessary or making improvements to the home.

Link to the City's website regarding Minneapolis Advantage: http://www.ci.minneapolis.mn.us/cped/minneapolisadvantage_home.asp