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Agenda - Council Work Session - 04/28/2020
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Agenda - Council Work Session - 04/28/2020
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Meetings
Meeting Document Type
Agenda
Meeting Type
Council Work Session
Document Date
04/28/2020
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124 <br />Minnesota Housing - Deferred Payment Loan <br />This loan is meant for first-time homebuyers to help ease the cost of home ownership. There are <br />two loan options, a deferred payment loan and a plus loan. The deferred payment loan starts at <br />$5,000 and up to $7,500. The maximum for the plus loan is higher, up to $10,000 for those <br />borrowers who fit target criteria. Minimum credit score for qualified borrowers is 640. The <br />borrowers must also attend a homebuyer education course. The loan term is equal to the first <br />mortgage and has 0% interest - the loan is repaid when the property is sold, no longer the <br />homestead of the homeowners, or the loan is refinanced. <br />Summary: <br />• Must be first-time homebuyers <br />• Two loan options — can borrow from $5,000 to $10,000 <br />• Minimum credit score of 640 <br />Minnesota Housing - Monthly Payment Loan <br />This program is designed to help Minnesota homebuyers afford the costs of purchasing a home. <br />Minnesota Housing has a monthly payment loan to help with 5% of the purchase price or $5,000, <br />whichever is greater, to be put towards closing costs and the down payment. Borrowers need to get <br />a Minnesota Housing first mortgage loan as well, which is either a Start Up (first-time homebuyers), <br />Step Up (refinancing), or MCC (mortgage credit certificate). The ten-year loan term comes with <br />monthly payments with an interest rate equal to first mortgage rate. Qualified borrowers need a <br />minimum 640 credit score and must meet program income limits. Borrowers also need to attend a <br />homebuyer education course. <br />Summary: <br />• Loan towards closing costs and home down payment <br />• Ten-year loan term with monthly payments <br />• Minimum 640 credit score <br />• Qualified borrowers must attend homebuyer education course <br />When we would use this: The City of Ramsey does not maintain this program. but does make <br />interested parties aware of the opportunity. The City of Ramsey would sunnort applications to this <br />program.The City of Ramsey does not maintvrn thiz program. <br />Minnesota Housing - Mortgage Credit Certificate <br />This program was designed to help Minnesota homeowners better afford their mortgages. This <br />Mortgage Credit Certificate allows homeowners to claim 35% of their mortgage interest paid every <br />year as a federal income tax credit — this can provide households with up to $2,000 in tax savings. <br />This certificate can used in conjunction with a Minnesota Housing mortgage, as well as the Monthly <br />Payment Loan which helps with the home down payment and closing costs. This program is geared <br />towards first-time homebuyers (not owned a home in at least three years and not displaced by <br />divorce). The certificate has many qualifications like: borrowers must qualify for a mortgage on a <br />house, meet the income limits of the program, plan to have the property as their primary residence <br />city of RAMSEY <br />Comprehensive Plan 2040 <br />
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