Buying a home

Buying a house doesn't need to be a headache.

The first step in buying a home: Educate yourself
Homebuyer workshops and counseling
Homebuyer financing
First-time home buyer programs
How much can you afford?
Tax incentives for first-time homebuyers in 2009/2010

Buying a home can be one of the most rewarding experiences of a lifetime - and one of the most stressful. After all, a home mortgage loan is the largest contract most of us will ever sign. Add to that the unfamiliar terminology and the endless stacks of legal documents, and it's not surprising that many people are confused by the whole experience.

But buying a home doesn't need to be a headache. In fact, with a little preparation, it can even be fun. Below you will find valuable information on resources and educational tools available to help you understand the home-buying process and to better prepare you for successful homeownership.

The Minnesota Attorney General's Office puts out a great publication called "The Home Buyer's Handbook."

Click here to download "The Home Buyer's Handbook"

As you begin to seek information on home buying, you may see or hear terms that you are not very familiar with.

Click here to view a glossary of terms offered by the U.S. Department of Housing and Urban Development (HUD)

The first step in buying a home: Educate yourself

For HUD Webcasts that you can view, some in English and/or Spanish, with captions available, go to
www.hud.gov/webcasts/archives/buying.cfm

This site offers information under the following titles:

How to Buy a Home - learn key steps to buying a home and the seven questions you should ask yourself before getting started.
Five Ways to Move Ahead Fast - What consumers need to know about buying a home-including income, credit, downpayment, who to trust, & key steps in the process.
Avoiding Predatory Lending - learn the signs of fraudulent practices in the homebuying process and ways to avoid them.
Homeownership for Native Americans
Purchasing a HUD Home
ABCs of Homebuying
Elevate Your Credit
Where to Find the Homeownership Money You Need
Ten Homeownership Facts that Will Save You Thousands
Easy to Understand Mortgage Programs

Homebuyer workshops and counseling

Home Stretch, a two-part program of workshops and individualized counseling, is offered by the Minnesota Home Ownership Center and is especially recommended for First-Time Home Buyers.

For workshop times and locations go to
www.hocmn.org/en/buyahome.cfm

Attend a workshop to help you:

Determine your financial situation.
Understand credit and credit issues.
Discover the types of home ownership.
Learn the role of the lender.
Gain understanding of the loan closing process.
Know your legal rights and responsibilities as a home owner.

Participate in our individualized Home Stretch counseling to help you:

Explore financing options that best meet your household needs.
Identify barriers to home ownership.
Present solutions to remove barriers preventing home ownership.
Create and implement a plan to help you become a successful homeowner.

Homebuyer financing

What type of loan is ideal for you? There are many options out there.

For a quick overview, provided by the Mortgage Bankers Association, go to
www.homeloanlearningcenter.com/MortgageBasics/MortgageTypes.htm
VA loan eligibility - loans for those who have served in the Military. For answers to frequently asked questions, go to
homeloans.va.gov/faqelig.htm

First-time home buyer programs

You can own a home! The Minnesota Mortgage Program (MMP) is a First Time Homebuyer loan program that helps low to moderate income Minnesotans buy a home. The affordable, low, fixed interest rates are available to eligible homebuyers statewide. Find out today how you can be on the road to successful homeownership with the Minnesota Mortgage Program.

To read more on what the Minnesota Housing Finance Agency has to offer, go to
www.mnhousing.gov/consumers/home-buyers/loans/index.aspx

What about assistance for down payment and closing costs? The Minnesota Housing Finance Agency provides the opportunity for eligible homebuyers who qualify for a Minnesota Housing loan to receive an interest-free, deferred loan to help with downpayment and closing costs through the Homeownership Assistance Fund (HAF) and the HOME Homeowner Entry Loan Program (HOME HELP).

HOME HELP Frequently Asked Questions (FAQs)
For more information, go to
www.mnhousing.gov/consumers/home-buyers/loans/MHFA_003407.aspx

How much can you afford?

These affordability and mortgage calculators are helpful tools in determining how much you can afford on your home purchase.

Federal Reserve:
www.federalreserve.gov/apps/mortcalc/
Freddie Mac calculators and tools:
www.freddiemac.com/corporate/buyown/english/calcs_tools/
GinnieMae home ownership guide and calculators:
www.ginniemae.gov/ypth/index.asp?Section=YPTH

Tax incentives for first-time homebuyers in 2009/2010

The American Recovery and Reinvestment Act of 2009 contains a tax credit for qualified First-time Home buyers of up to 10%, but not exceed $8,000.

Do you qualify? Read this this fact sheet (52KB PDF)

For more information, contact:

Housing and Redevelopment Authority
PH: 952-563-8937, TTY: 952-563-8740, FAX: 952-563-4977
E-mail:hra@ci.bloomington.mn.us