To address housing inequity, Minnesota introduced the First-Generation Homebuyers Down Payment Assistance Fund, offering up to $35,000 to prospective homeowners who meet specific criteria.
First-Generation Homebuyers Down Payment Assistance Fund: Unlocking Opportunities for Minnesota Homeownership (Photo from: iBuyer)
Forgivable Loans for First-Generation Buyers
Minnesota’s housing agency unveils the First-Generation Homebuyers Down Payment Assistance Fund, providing forgivable, interest-free loans to first-generation homebuyers. Eligible applicants whose parents did not own homes can receive up to $35,000 to ease the financial burden of purchasing a home. The forgiveness structure allows half of the loan to be forgiven after a decade, with complete forgiveness after 20 years, incentivizing long-term homeownership.
Prospective buyers facing hurdles of intergenerational wealth disparities and racial inequities in homeownership can find solace in Minnesota’s innovative program. Those whose parents or guardians never owned a home or lost one to foreclosure qualify for assistance. Remarkably, even individuals unaware of their parents’ homeownership status may still be eligible. The fund aims to dismantle systemic barriers by empowering marginalized communities to achieve homeownership.
Accompanying the First-Generation Homebuyer Loan Program is the First-Generation Homebuyers Down Payment Assistance Fund. This additional initiative offers 10% of a home’s value, capped at $32,000, in interest-free loans for down payments. Unlike its counterpart, forgiveness occurs after five years, providing quicker relief for homeowners.
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Addressing Historical Disparities
Minnesota’s commitment to addressing racial disparities in homeownership underscores the state’s dedication to fostering inclusive communities.
With Black Minnesotans disproportionately excluded from homeownership opportunities, these initiatives offer a pathway to rectify historical injustices and foster economic empowerment.
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