There are a variety of loan programs for residents in Minnesota and Wisconsin. But if you are a first-time home buyer struggling to find the right loan and the funds, two organizations may help pave the way to home ownership.
What are My Options?
Homeownership is more than having a roof over your head, it’s about creating a future for you and your family. The Wisconsin Housing and Economic Development (WHEDA) and the Minnesota Housing and Finance Agency (MHFA) empower people by providing 30-year fixed-rate mortgages for purchase at affordable rates.
WHEDA
Su Vang, Mortgage Loan Officer (NMLS #1802921) at Coulee Bank in Wisconsin says, “Working with WHEDA allows first-time home buyers to enter the housing market with affordable lending options. They also provide discounted interest rates and private mortgage insurance.”
WHEDA also offers down payment assistance and closing cost assistance. To be eligible for these options borrowers must have a credit score of 620 or higher and attend a home buyer education course. Vang says he has worked with multiple buyers who have brought zero to a few hundred dollars to their house closing.
MHFA
The MHFA strengthens communities in Minnesota by creating choices and opportunities that make affordable housing accessible to low and moderate-income households. Ken Lahr, Mortgage Loan Officer (NMLS #326612) at Coulee Bank in Minnesota says, “There are income and other eligibility requirements to qualify for the program, so home buyers will want to make sure they know their options up front.”
Some of the homebuying guidelines noted on the MHFA website include:
- Income limits up to $142,800 based on county.
- House price purchase limits up to $659,550 in the 11-county Metro area and $604,400 for all other counties.
- Downpayment and Closing Cost Loan options – up to $18,000 available!
- Minimum credit score.
- Owner-occupancy requirement.
- Homebuyer education: At least ONE borrower must complete an approved homebuyer education course before closing on the home.
Lahr says, “The program is a valuable tool to help potential home buyers achieve their dream of home ownership.”
These organizations not only assist first-time home buyers but also help with refinancing options and home improvements. Contact your local Coulee Bank Mortgage Loan Officer for more information about these programs.