Minnesota Housing: A Path to Successful Homeownership Minnesota Housing: Real Estate Program A Path to Homeownership & Family Self-Sufficiency (REP)
Today s conversation Who we are Why we re here Increasing Homeownership rates FSS in Multifamily Building a bridge for renters Spreading the word about our homeownership programs
Increasing Homeownership Two divisions, one agency Opportunities within the Multifamily portfolio Developer/Owner partnership
FSS in Multifamily Notice 2016-08 Barriers to launch in Multifamily Current state
Building a bridge for renters Focus on our LIHTC projects Matching sites with providers Progress to date
Spreading the word Outreach and information sharing Provider and lender networks throughout the state
Our Role Minnesota s state housing finance agency Minnesota Housing office in downtown St. Paul In 2017, invested more than $1.12 billion and served 69,267 households More than 5,000 households benefited from homeownership and home improvement loans last year Total assets of $3.16 billion
Over the past 45 years, more than 90,000 families have purchased homes with the help of Minnesota Housing.
First-time homebuyer median income $72,000 $84,200 Greater MN Minnesota Housing household income eligibility (1-2 person)
Minnesota median sale price $244,745 (Statewide) $274,400 (Metro) $271,100 Greater Minnesota Minnesota Housing home cost limit Source: Minnesota Association of Realtors 7/18 report
Our Shared Goal Minimum Credit Score Strong buyers and Borrower Investment low foreclosure rate Homebuyer Education
Bridging the Gap National Rank Category Percent 3 Overall Homeownership Rate 71.3% 8 38 Homeownership Rate for White, not Hispanic or Latino, Households Homeownership Rate for Diverse Households 76.1% 41.0% 5 Gap in Homeownership Rates 35.0% Source: U.S. Census Bureau, American Community Survey, 2016
Accessing Minnesota Housing
Our Lender Network We do not originate or underwrite Work with statewide network of approved lenders
Layering Products Minnesota Housing Downpayment/Closing Cost Loans (Monthly Payment Loan or Deferred Payment Loan) Minnesota Housing First Mortgage Program (Start Up or Step Up) Underlying Mortgage Product (Government or Conventional)
How it Works Borrower Applies for loan with Minnesota Housing approved lender Lender Originates, underwrites, closes and funds loan Sells loan to Master Servicer, U.S. Bank, HFA Division U.S. Bank Loans pooled into MBS and sold or pledged to MRB Final investor in the process
Loan Options FHA VA RD Exclusive Conventional (Fannie Mae and Freddie Mac)
Loan Programs First-Time Homebuyer Repeat Homebuyer or Current Homeowner Start Up First-time homebuyer loans Purchase Loan Downpayment and Closing Cost Loans Monthly Payment Loan Deferred Payment Loans Deferred Payment Loan (DPL) option Deferred Payment Loan Plus (DPL+) option Step Up Repeat homebuyer loans Purchase Loan Refinance Loan Downpayment and Closing Cost Loans Monthly Payment Loan Fix Up Home improvement loans Secured Loan Secured Energy/ Accessibility Loan Unsecured Loan Unsecured Energy Loan
Start Up for First-Time Homebuyers
Start Up Eligibility First-time homebuyer (hasn t owned home in past 3 years) Home under purchase price limit Under program income limits Minimum credit score of 640
Start Up Home Cost Limits Area 11-County Twin Cities Metro Area New and Existing Residences $328,200 Balance of State $271,100
Start Up Income Limits Household Size 11-County Twin Cities Metro Area Dodge/ Olmsted Counties All Other Counties 1-2 $94,300 $90,500 $84,200 3+ $108,400 $104,000 $96,800
Repeat Homebuyers & Current Homeowners
Repeat Homebuyers Make up 68% of recent buyers Median age of 53 Median income of $98,700
Benefits Refinance or purchase No first-time homebuyer requirement Affordable fixed interest rates Monthly Payment Loan option Benefit to you: Opens up your pool of buyers think growing families and empty nesters!
Home Cost Limits Area 11-County Twin Cities Metro Area New and Existing Residences $328,200 Balance of State $271,100
Income Limits 11-County Twin Cities Metro Area Dodge/ Olmsted Counties All Other Counties $141,000 $141,000 $125,900 Qualifying Income used only. No household size requirements.
Downpayment and Closing Cost Loans for homebuyers
Monthly Payment Loan Amortizing loan requiring monthly payments 10-year term Interest rate equal to first mortgage rate Loan amount up to $15,000 (available in $100 increments) Required borrower investment of $1,000 or 1% of the purchase price, whichever is lower
Start Up (MPL) Income Limits Household Size 11-County Twin Cities Metro Area Dodge/ Olmsted Counties All Other Counties 1-2 $94,300 $90,500 $84,200 3+ $108,400 $104,000 $96,800
Step Up (MPL) Income Limits 11-County Metro Area Dodge & Olmsted Counties All Other Counties $141,000 $141,000 $125,900 Use qualifying income 31
Deferred Payment Loan 0% deferred loan No payment until first mortgage is paid in full Loan amount up to $8,000 (available in $100 increments) Required borrower investment of $1,000 or 1% of the purchase price, whichever is lower
Deferred Payment Loan Plus Loan amount up to $10,000 Borrower must meet two of four criteria Interest-free Required borrower investment of $1,000 or 1% of purchase price, whichever is lower
Income Limits Household Size 11-County Twin Cities Metro Area Dodge/Olmsted Counties All Other Counties 1-2 people $68,000 $68,000 $61,000 3 people $76,000 $76,000 $68,000 4 people $85,000 $85,000 $76,000 5 people $92,000 $92,000 $82,000 6 people $98,000 $98,000 $88,000 7+ people $105,000 $104,000 $94,000
Resources
www.mnhousing.gov
Don t miss out on important news and events! enews
Promotional Materials Our free materials make promoting Minnesota Housing programs easy! Visit the Marketing page to order.
Homebuyer Education Minnesota Homeownership Center (www.hocmn.org) Homebuyer education is required for most borrowers Home Stretch (in-person) Framework (online) Pathways Home: A Native Homeownership Guide Realizing the American Dream (Minneapolis Urban League) Benefit for you: More educated buyers who know what they re looking for.
We ve Got it All! 1 2 3 4 We re not just for first-time homebuyers. About 83% of Greater MN MLS listings are within our home cost limit of $271,100. Greater MN income limits go up to $125,900. Closing cost loans go up to $15,000.
Open Discussion and Q & A Questions about Homeownership programs? FSS success stories and lessons learned?
Thank you!