Downpayment and Closing Cost Loan Changes We recognize the current market is competitive for your borrowers as they face multiple bids, rising home prices, and a reduction in seller-paid closing costs. To meet these challenges and continue to support first-time homebuyer needs, the following two changes will be effective for loans locked on or after March 1:
1. Increases to the Maximum Loan Amounts
Effective for loans locked on or after March 1, downpayment and closing cost loans will have the following maximum loan amounts:
- Deferred Payment Loan: Up to $8,000
- Deferred Payment Loan Plus: Up to $10,000
- Monthly Payment Loan: Up to $12,000
2. Increases to Deferred Payment Loan Income Limits
Effective for loans locked on or after March 1, Deferred Payment Loan and Deferred Payment Loan Plus income limits will increase to better align with the current market. To match the Start Up household structure, we changed the lowest income tier from 1-3 household members to 1-2 household members. Household Size
| Twin Cities Metro
and Rochester
| Greater Minnesota
|
1-2 Person
| $65,000
| $59,000
|
3 Person
| $73,000
| $66,000
|
4 Person
| $82,000
| $73,000
|
5 Person
| $88,000
| $79,000
|
6 Person
| $95,000
| $85,000
|
7+ Person
| $99,500
| $89,000
|
There are no changes to the Monthly Payment Loan, Start Up, MCC, or Step Up income limits at this time. Web pages and online resources will be updated on March 1 to reflect these changes. New brochures - one for buyers just getting started and one outlining our loan programs - will also be available to order at that time. Looking Ahead
We position our downpayment programs to be responsive to changing market conditions and borrower needs, while also meeting budget constraints. This may mean more frequent updates to our program limits or requirements. We appreciate your flexibility, and we will continue to communicate with you as we respond to an ever-changing market and industry.
