First Time Homebuyer Program
The Community Development Agency of Dakota County offers the First Time Homebuyer Program as a way to help lower-income families become homeowners.
Established in 1983, the First Time Homebuyer Program is a deferred-payment loan with 0% interest. The loan amount becomes due once the first mortgage has been paid in full, or when the property is sold or refinanced. However, borrowers can make payments toward this loan (including paying it in full) at any time with no penalty.
In order to qualify, the applicant must put down a minimum of $1,000 from their own funds.
The amount of assistance received depends on the purchase price of the house and certain household income limits, shown below.
- At or less than 50% AMI (Area Median Income) – Can receive up to $10,000, or 10% of the sale price of the house (whichever is smaller)
- Income Limits:
- 1 person household: $31,650
- 2 person household: $36,200
- 3 person household: $40,700
- 4 person household: $45,200
- 5 person household: $48,850
- 6 person household: $52,450
- 7 person household: $56,050
- 8 person household: $59,700
- Between 50% AMI and 80% AMI - Can receive up to $7,500, or 5% of the sale price of the house (whichever is smaller)
- Income Limits:
- 1 person household: $47,600
- 2 person household: $54,400
- 3 person household: $61,200
- 4 person household: $68,000
- 5 person household: $73,450
- 6 person household: $78,900
- 7 person household: $84,350
- 8 person household: $89,800
- More than 80% AMI - Can receive up to $7,500, or 3.5% of the sale price of the house (whichever is smaller)
- Income Limits:
- 1 person household: $90,400
- 2 person household: $90,400
- 3 person household: $103,900
- 4 person household: $103,900
- 5 person household: $103,900
- 6 person household: $103,900
- 7 person household: $103,900
- 8 person household: $103,900
