Central Minnesota Housing Partnership (CMHP) is a certified home buyer education and pre-purchase counseling provider by Housing and Urban Development (HUD) and by the Minnesota Homeownership Center.

 

PRE-PURCHASE COUNSELING

Central MN Housing Partnership

Purchasing your first home can be quite an adventure, and the more knowledge you have about the process, the better chance you will make the right decisions along the way. Central Minnesota Housing Partnership (CMHP) offers Pre-Purchase one-on-one counseling to discuss in detail the process of homeownership with a Homeowner Advisor. We want every homebuyer to be prepared for the journey and we want to help in any way that we can.


A HOMEOWNER ADVISOR CAN

  • Help you determine if you are ready to buy
  • Help you calculate how much home you can afford
  • Review your credit report with you
  • Provide information on current mortgage loan programs
  • Personalize a plan to get YOU into homeownership
  • Get you connected to down payment and closing cost assistance programs

DOES IT COST ANYTHING?
No, counseling services are free of charge.

CAN WE LOOK AT MY CREDIT REPORT?
Yes, we can review your credit report. If you do not have a recent report on hand, we can pull your credit report for you for a small fee.

HOW DO I SCHEDULE AN APPOINTMENT?
You schedule book your appointment today by contacting Homeowner Advisor, Lea Engnell at 320.258.0681 or Lengnell@cmhp.net

HOME STRETCH WORK SHOPS

Central MN Housing Partnership

Home Stretch Work Shops are taught by knowledgeable local housing professionals with up-to-date information on the world of home buying and home ownership. Our volunteer instructors come from a variety of housing back grounds to include: mortgage lenders, Realtors, credit counselors, loan closers and home inspectors. The greatest benefit to Home Stretch participants is they have the opportunity to ask important relevant questions and have these questions answered in class by knowledgeable and credible housing professionals. Home Stretch is often required by lenders to receive funding depending on the mortgage product.

GAIN KNOWLEDGE IN THE FOLLOWING

  • Budgeting and spending plans
  • Different mortgage products
  • Shopping for a home
  • Home inspections
  • The closing process
  • Maintaining a home

DOES IT COST ANYTHING?
There is a fee of $30 per household which includes the cost of a binder of information each household leaves the workshops with.

HOW TO REGISTER
You can contact Program Coordinator, Lea Engnell at 320.258.0681 or Lengnell@cmhp.net or visit www.cmhp.net to register for an upcoming Home Stretch Work Shop.

Single Family Housing Guaranteed Loan Program

This program assists approved lenders in providing low- and moderate-income households the opportunity to own adequate, modest, decent, safe and sanitary dwellings as their primary residence in eligible rural areas. Eligible applicants may build, rehabilitate, improve or relocate a dwelling in an eligible rural area. The program provides a 90% loan note guarantee to approved lenders in order to reduce the risk of extending 100% loans to eligible rural homebuyers.

Applicants must:

  • Meet income-eligibility
  • Agree to personally occupy the dwelling as their primary residence
  • Be a U.S. Citizen, U.S. non-citizen national or Qualified Alien
  • Have the legal capacity to incur the loan obligation
  • Have not been suspended or debarred from participation in federal programs
  • Demonstrate the willingness to meet credit obligations in a timely manner
  • Purchase a property that meets all program criteria

What is an eligible area?
Check eligible addresses for the loan guarantees.

How may funds be used?
Funds backed by loan guarantees be used for:

  • New or existing residential property to be used as a permanent residence.  Closing cost and reasonable/customary expenses associated with the purchase may be included in the transaction
  • A site with a new or existing dwelling
  • Repairs and rehabilitation when associated with the purchase of an existing dwelling
  • Refinancing of eligible loans
  • Special design features or permanently installed equipment to accommodate a household member who has a physical disability
  • Reasonable and customary connection fees, assessments or the pro rata installment cost for utilities such as water, sewer, electricity and gas for which the buyer is liable
  • A pro rata share of real estate taxes that is due and payable on the property at the time of loan closing.  Funds can be allowed for the establishment of escrow accounts for real estate taxes and/or hazard and flood insurance premiums
  • Essential household equipment such as wall-to-wall carpeting, ovens, ranges, refrigerators, washers, dryers, heating and cooling equipment as long as the equipment is conveyed with the dwelling
  • Purchasing and installing measures to promote energy efficiency (e.g. insulation, double-paned glass and solar panels)
  • Installing fixed broadband service to the household as long as the equipment is conveyed with the dwelling
  • Site preparation costs, including grading, foundation plantings, seeding or sod installation, trees, walks, fences and driveways

How do we get started?
Applicants must apply with an approved lender.  Applicants can review a partial list of approved lenders and information about all of the approved lenders in your state can be obtained by contacting your state’s Guaranteed Loan Coordinator.

Who can answer questions?
Applicants with questions should contact an approved lender.  Lenders with questions can contact a Guaranteed Loan Specialist in your state.

NOTE: Because citations and other information may be subject to change please always consult the program instructions listed in the section above titled "What Law Governs this Program?" You may also contact your local office for assistance.

Single Family Housing Direct Home Loans

Also known as the Section 502 Direct Loan Program, this program assists low- and very-low-income applicants obtain decent, safe and sanitary housing in eligible rural areas by providing payment assistance to increase an applicant’s repayment ability. Payment assistance is a type of subsidy that reduces the mortgage payment for a short time. The amount of assistance is determined by the adjusted family income.

Who may apply for this program?
A number of factors are considered when determining an applicant’s eligibility for Single Family Direct Home Loans. At a minimum, applicants interested in obtaining a direct loan must have an adjusted income that is at or below the applicable low-income limit for the area where they wish to buy a house and they must demonstrate a willingness and ability to repay debt.

Applicants must:

  • Be without decent, safe and sanitary housing
  • Be unable to obtain a loan from other resources on terms and conditions that can reasonably be expected to meet
  • Agree to occupy the property as your primary residence
  • Have the legal capacity to incur a loan obligation
  • Meet citizenship or eligible noncitizen requirements
  • Not be suspended or debarred from participation in federal programs

Properties financed with direct loan funds must:

  • Generally be 2,000 square feet or less
  • Not have market value in excess of the applicable area loan limit
  • Not have in-ground swimming pools
  • Not be designed for income producing activities

Borrowers are required to repay all or a portion of the payment subsidy received over the life of the loan when the title to the property transfers or the borrower is no longer living in the dwelling.

Applicants must meet income eligibility for a direct loan.  Please select your state from the dropdown menu above.

What is an eligible area?
Generally, rural areas with a population less than 35,000 are eligible.  Visit the USDA Income and Property Eligibility website for complete details.

How may funds be used?
Loan funds may be used to help low-income individuals or households purchase homes in rural areas. Funds can be used to build, repair, renovate or relocate a home, or to purchase and prepare sites, including providing water and sewage facilities.

How much may I borrow?
The maximum loan amount an applicant may qualify for will depend on the applicant’s repayment ability. The applicant’s ability to repay a loan considers various factors such as income, debts, assets and the amount of payment assistance applicants may be eligible to receive. Regardless of repayment ability, applicants may never borrow more than the Area's Loan Limits (plus certain costs allowed to be financed) for the county in which the property is located.

What is the interest rate and payback period?

  • Fixed interest rate based on current market rates at loan approval or loan closing, whichever is lower
  • Interest rate when modified by payment assistance, can be as low as 1%
  • Up to 33 year payback period - 38 year payback period for very low income applicants who can’t afford the 33 year loan term

How much down payment is required?
No down payment is typically required. Applicants with assets higher than the asset limits may be required to use a portion of those assets.

Is there a deadline to apply?
Applications for this program are accepted through your local RD office year round.

How long does an application take?
Processing times vary depending on funding availability and program demand in the area in which an applicant is interested in buying and completeness of the application package.

NOTE: Because citations and other information may be subject to change please always consult the program instructions listed in the section above titled "What Law Governs this Program?" You may also contact your local office for assistance.