To all you home buyers out there looking to buy a home in Minneapolis, listen up, as you might be able to take advantage of the Minneapolis Advantage Program. It helps potential buyers purchase a home in neighborhoods beseeched with foreclosures. Last year was the pilot program and it went very well (see more below), and this year will most likely prove to be another huge success.
Two hundred loans at $10,000 each will be provided on a first come, first serve basis as of April 1, 2009. The funds can be used for closing costs, down payment assistance, or small repairs to the home, and if you keep the house for five years, the loan is forgivable. As with last year, only certain areas of Minneapolis apply, so you will have to be purchasing a home in one of these neighborhoods to qualify.
Income Requirements and Program Guidelines
If your income is less than $64,720 (less than 80% of the area median income), you may qualify for the following program:
- Minneapolis Advantage Program – Federal Home Loan Bank, Guidelines
If your income is less than $97,080 (less than 120% of the area median income), you may qualify for the following program:
- Minneapolis Advantage Program – City of Minneapolis, Guidelines
2008 Results for the Minneapolis Advantage Pilot Program
Last year, every real estate agent in town was excited to see the loan program offered by the City of Minneapolis. However the program was such a success, that before anyone knew it, the funds were all used up. Only $500,000 was available at the time, so 50 lucky home buyers were able to qualify for the $10,000 (just a quarter of what is now being offered). Here are some of the statistics for the Advantage Program in 2008:
- 62% of the homes purchased were foreclosures
- 50% of the homes were sold for under $100,000, and 82% were under $150,000
- 80% of the homes bought were located in North Minneapolis
- 78% of purchases were from first time home buyers
You can even see where each home is located by viewing this map.