Rybak Announces Home Buying Incentive Plan

Minneapolis Mayor R.T. Rybak and city leaders announced the start of Minneapolis Advantage, a home mortgage loan program funded by the city that provides 200 loans of $10,000 – forgivable after 5 years -- to help people buy a home in the city.
 

“Now is the perfect time to buy a home in Minneapolis,” said Rybak. “Not only are homes affordable and interest rates low, but the City of Minneapolis can help you with $10,000 for closing costs and down-payment assistance. This incentive will put people back into homes in communities hit by foreclosure, creating a stronger sense of community.”
 

“The key to rebuilding neighborhoods overwhelmed by foreclosures is to get solid, responsible homeowners into these neighborhoods,” Rybak added. Our job is to help make that happen and these loans will make our job a whole lot easier.”
 

“Given the program’s guidelines, only stable homebuyers with an approved traditional, fixed-rate mortgage will be able to move into these neighborhoods," said Council President Barbara A. Johnson. "That way we can strengthen these blocks with solid home-owners.”
The program attempts to rebuild neighborhoods impacted by foreclosure and aims to stabilize communities.
 

Potential homeowners must complete a counseling workshop that prepares buyers for the important choices of home ownership.
 

The program is funded by the City of Minneapolis and the Federal Home Loan Bank of Des Moines.
A 2008 pilot version of the program allowed 50 homebuyers to purchase homes in the city.
 

Minneapolis Advantage program details
• Purchasers must have an income of less than 120% of the area median income ($97,080) and the property must be the purchaser’s primary place of residence.
• Purchasers must receive a traditional (prime or A-rated), fixed-rate first mortgage loan or purchase with cash.
• A loan of $10,000 at zero-percent interest is forgiven at the end of five years if the purchaser continues to occupy the home as a primary place of residence.
• The loan can be used as assistance with down payment, closing costs, and home repair costs.
• The property can be a single family dwelling or duplex within an eligible neighborhood.
• Two options, depending on income limits, are available:
 

1. For incomes below 80% area median income:
Purchase of a foreclosed home in the following neighborhoods: Bryant, Sheridan, Lind-Bohanon, Ventura Village, Whittier, Audubon Park, Holland, Phillips West, Cleveland, McKinley, Harrison, Powderhorn Park, Webber-Camden, Midtown Phillips, Folwell, Near North, Central, Willard-Hay, Jordan, Hawthorne, East Phillips, Beltrami.

2. For incomes below 120% area median income:
Purchase of a foreclosed home or a home on the City’s 249 vacant and boarded buildings list, OR a vacant home for at least 30 days in the following neighborhoods: Corcoran, Bottineau, Regina, Victory, Bryant, Sheridan, Lind-Bohanon, Ventura Village, Whittier, Audubon Park, Holland, Phillips West, Cleveland, McKinley, Harrison, Powderhorn Park, Webber-Camden, Midtown Phillips, Folwell, Near North, Central, Willard-Hay, Jordan, Hawthorne, East Phillips, Beltrami.

Home buyers must apply for a Minneapolis Advantage loan through their first mortgage lender. Loans will be given on a first come, first serve basis. For more information about the loan program call Greater Metropolitan Housing Corporation at 612-588-3033.