Minneapolis’ mortgage assistance program helps neighborhoods recover from foreclosure challenges
Since 2008, the City of Minneapolis has helped nearly 350 home buyers purchase homes in neighborhoods stressed by foreclosure through its Minneapolis Advantage Program. The forgivable loan program assists with down payment and closing costs, and helps rebuild neighborhoods, stabilize communities and promote sustainable home ownership.
Funding Available in 2012
Approximately $400,000, or around 25 loans, is available to help potential buyers purchase a foreclosed home in eligible neighborhoods. Based on income eligibility requirements, buyers within 80% of the area median income (approximately $64,000 for a four-member household) can receive up to $20,000 and buyers within 120% of the area median income (approximately $100,700 for a four-member household) can receive up to $10,000. These funds can be used to pay for closing costs and down payment assistance. For more information, call the Greater Metropolitan Housing Corporation, program administrator, at 612-588-3033 or see Minneapolis Advantage Program--Mortgage Assistance.
Minneapolis Advantage partners
The success of this program has spurred additional investment from partners who also want to help with recovery. The City’s investment of $1.2 million in the program has leveraged an additional $3.2 million from Wells Fargo, Minnesota Housing, Federal Home Loan Bank Des Moines and through the U.S. Department of Housing and Urban Development Neighborhood Stabilization Program.
Minneapolis Advantage Program performance
- All homes had to be foreclosed, vacant, or in a high foreclosure-impacted neighborhood
- Loan recipients purchased homes in 30 Minneapolis neighborhoods
- Nearly 350 homes have been purchased
- Nearly 60% of the home buyers moved to Minneapolis from elsewhere
- 89% of the recipients are first time home buyers
- 48% of the home buyers are between the ages of 31-50
- Average household size is two
- 49% of the homes’ purchase prices are less than $100,000; 39% of purchase prices are between $100,000-$150,000
Interested in purchasing a foreclosed home? Check out www.ownahomemn.org for a listing of foreclosed homes that have been renovated and are on the market; www.livemsp.org provides a directory of home buyer incentive programs and resources by neighborhood; www.hocmn.org offers resources and education to home buyers.
Published Feb. 7, 2012