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Suburban Hennepin County

This program is for hombuyers purchasing in all of Hennepin County except the City of Minneapolis.

Hennepin County NSPHomebuyer Rehabilitation Program

First time homebuyer	Does not need to be a first time homebuyer
Type of assistance	Down payment assistance
Income limits	$44,800-$132,900
Purchase price limit	$276,683

The Neighborhood Stabilization Program NSP Homebuyer Assistance Program provides financial assistance for low, moderate and middle-income households to become homeowners in neighborhoods that have been impacted by the high rate of foreclosure. Hennepin County will provide NSP financing to assist buyers purchasing vacant, foreclosed properties in target areas in Brooklyn Park, Brooklyn Center, Champlin, Crystal, New Hope and Richfield. This program offers $1,000 to $10,000 loans to households below 120% of the area median income and up to $30,000 for those below 80% of the area median income. The loans can be used for up to 50% of the required down payment or reasonable and necessary costs associated with the purchase. The borrower must contribute at least $1,000 of his or her own funds to the purchase of the property.

Loan Terms

This is a zero percent interest deferred loan that is forgiven at the end of its term. Loans form $1,00 to $14,999 will be on a five year term, and loans from $15,000 to $30,000 will be on a ten year term. The loan must be repaid if the property is sold, refinanced, not maintained as the borrower’s principle place of residence, or ownership is transferred before the loan term ends.

Eligible Buyers

The buyer does NOT need to be a first time homebuyer but must qualify for and receive a fixed rate FHA, VA, or Conventional, or Fannie Mae or Freddie Mac insured loan. However, the borrower must not have an ownership interest in another property and must occupy the subject property as their primary residence within 60 days of closing. Buyers must also complete a HUD-approved Home Stretch homeownership class and meet the following income requirements:

Household size	120% Income limit	80% Income limit
1 person	$70,500	$44,800
2 person	$80,550	$51,200
3 person	$90,600	$57,600
4 person	$100,700	$64,000
5 person	$108,750	$69,100
6 person	$116,800	$74,250
7 person	$124,850	$79,350
8 person	$132,900	$84,500

Eligible Properties

The property must be a single family home, townhouse, condo, manufacture housing unit, or cooperative that is unoccupied and foreclosed and located in a target area in suburban Hennepin County. The property must be purchased at a minimum one percent discount from appraised value. Hennipen County will order and secure the appraisal within 60 days of the final offer. Properties must be purchased for less than $276,683.

*This summary is intended for informational and educational purposes only; other terms, requirements and guidelines may apply. Many of these programs have subsidy recapture requirements, and are only available through approved lenders. Many programs require homebuyer education classes for first time homebuyers. This document is not intended to be an offer of commitment of any kind, including but not limited to: an offer to extend credit, commitment to lend, or an offer to lock into an interest rate. Any such offer can be made pursuant to MN statute § 47.206, subdivision 3 and 4. Any interest rates, fees, and terms presented are for illustrative purposes only and may not be currently available as these programs are subject to change without notice, and are operated on a first come first serve basis.