Downpayment and Closing Cost Loan Changes Effective March 1

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
Review the Downpayment and Closing Cost Loans Comparison for more information.
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.
Reminder: Share Your Feedback on Our Homebuyer Programs
As a valued Minnesota Housing lender partner, we invite you to join us for a discussion on ways we can make our programs even better. What’s working? What needs improvement? Many of you identified needs and opportunities in last month’s lender survey.
We are offering two sessions where we can dig deeper to develop solutions and program adjustments - choose the one that fits your role: 

Operations Input Session with Minnesota Housing and U.S. Bank Operations
Tuesday, March 14 from 9:30–11:30 a.m. | Register

Geared towards processors, underwriters, closers, shippers, and operations managers, and will focus on: 

  • Lender support at Minnesota Housing and U.S. Bank HFA Division
  • Conventional products
  • Topics chosen by participants

Origination and Production Input Session with Minnesota Housing
Tuesday, March 14 from 1:30-3:30 p.m. | Register

Geared towards loan officers, production managers, and branch managers, and will focus on:

  • Conventional products
  • Downpayment and closing cost loans
  • Lender support at Minnesota Housing and U.S. Bank HFA Division
  • Step Up
  • Topics chosen by participants

Refreshments will be served at both sessions. Validated parking is available at the Block 19 Municipal Parking Ramp (145 East 7th Street at the corner of Jackson and East 7th Streets across from the Metro Square Building). Register today!
If you are unable to come, please send your comments or discussion items to Kirsten Partenheimer.
Need a Minnesota Housing Refresher?
Training is not just for loan officers. Our Webinars are just as important for underwriters, processors, closers and post-closers. Visit the training page for more details and register for these upcoming Webinars:
Questions?
You can reach the Partner Solutions Team at 651.296.8215 or 800.710.8871 between 7:30 a.m. and 5:00 p.m. on business days.
400 Sibley Street, Suite 300 | Saint Paul, MN 55101 US
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