The city of Woodbury has their own first time homebuyer program. The city provides a low interest loan of up to $30,000 to be applied to closing costs or down payment. The interest on this second mortgage is a below market rate. Interest only payments are due on a monthly basis and the principal balance is deferred until the loan is paid off, the seller moves, refinances, or when the property is no longer owner occupied. If you are a first generation home buyer the interest rate is 0%.
Current criteria for the home and the buyer which must be met is:
- Home must be within the city limits of Woodbury.
- This program can be used to purchase a single-family home, townhome, twinhome or condo as long as it is the primary place of residence.
- Household income cannot exceed $146,000
- Home purchase price must be under $419,000
- The buyer must fill out a Woodbury loan application at least 30 days before closing.
- Must participate and complete 8 hours of prepurchase education.
- Buyer must contribute a minimum of 3.5% of the purchase price not to exceed $10,000. Buyer contribution can come in form of buyers’ funds, gift from a relative, lender credits, seller paid closing costs or down payment programs through the state of Minnesota.
- Borrower does not need to be a first time home buyer if they are purchasing a foreclosed home and intend to be owner occupants.
This is a great program, and there are only certain lenders who are qualified to do this loan. If you are interested in taking advantage of this program give us a call and we will put you in touch with one of those lenders.
Real Estate | Your@HomeTeam 