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. 

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