Minneapolis Advantage funding offers aid to home buyers
The City of Minneapolis has made $2 million available through Minneapolis Advantage
The Minneapolis Advantage program, in addition to rebuilding neighborhoods impacted by foreclosure, also promotes sustainable home ownership and stabilized communities. Every potential homeowner must also complete a counseling workshop that prepares buyers for the important choices related to home ownership. The Minneapolis Advantage program is funded by the City of Minneapolis and the Federal Home Loan Bank of Des Moines. The successful program, piloted in 2008, has already allowed 50 homebuyers to purchase in the city.
Minneapolis Advantage program details
- Purchasers must have an income of less than 120% of the area median income ($97,080) and the property must be the purchaser’s primary place of residence.
- Purchasers must receive a traditional (prime or A-rated), fixed-rate first mortgage loan or purchase with cash.
- A loan of $10,000 at zero-percent interest is forgiven at the end of five years if the purchaser continues to occupy the home as a primary place of residence.
- The loan can be used as assistance with down payment, closing costs, and home repair costs.
- The property can be a single family dwelling or duplex within an eligible neighborhood.
- Two options, depending on income limits, are available:
1. For incomes below 80% area median income:
Purchase of a foreclosed home in the following neighborhoods: Bryant, Sheridan, Lind-Bohanon, Ventura Village, Whittier, Audubon Park, Holland, Phillips West, Cleveland, McKinley, Harrison, Powderhorn Park, Webber-Camden, Midtown Phillips, Folwell, Near North, Central, Willard-Hay, Jordan, Hawthorne, East Phillips, Beltrami.
2. For incomes below 120% area median income:
Purchase of a foreclosed home or a home on the City's 249 vacant and boarded buildings list, OR a vacant home for at least 30 days in the following neighborhoods: Corcoran, Bottineau, Regina, Victory, Bryant, Sheridan, Lind-Bohanon, Ventura Village, Whittier, Audubon Park, Holland, Phillips West, Cleveland, McKinley, Harrison, Powderhorn Park, Webber-Camden, Midtown Phillips, Folwell, Near North, Central, Willard-Hay, Jordan, Hawthorne, East Phillips, Beltrami.
- Home buyers must apply for a Minneapolis Advantage loan through their first mortgage lender. Loans will be given on a first come, first serve basis. For more information about the loan program call Greater Metropolitan Housing Corporation at 612-588-3033.Â
Questions about purchasing in:
- North Minneapolis, call 612-588-3033
- Northeast Minneapolis, call 612-378-7985
- South Minneapolis, call 612-378-7985
Questions about purchasing in:
- North Minneapolis, call 612-588-3033
- Northeast Minneapolis, call 612-378-7985
- South Minneapolis, call 612-378-7985
Buyers:
- Since home prices were low, the program made home buying affordable. Even though there were no income restrictions, 76% of the buyers were at 80% MMI or less.
- The majority of the buyers were younger, with 57% younger than 36 years old.
- 78% of the buyers were first-time homeowners.
- 65% of the homeowners are White (not Hispanic); 13% are African-American; 19% are Asian; 3% are of two or more races.
- Nearly 30% of the households moved from the suburbs or Saint Paul, and of those, 95% moved to the eligible North Minneapolis neighborhoods.
In May 2008, 62 percent of the pilot Minneapolis Advantage
Funds from the pilot program were used to purchase a mix of homes. More than 50 percent of buyers bought homes under $100,000 and 82 percent purchased homes under $150,000.
Map of Properties Purchased Using the Minneapolis Advantage pilot program .
April 7, 2009
Published Apr. 7, 2009