Loan Programs

CBC offers Zero down Conventional and FHA loans with no Income Limits as well as reduced interest loans with income limits.

Unison Home Ownership Investors offer matching down payment loans for purchase prices up to Ten Million Dollars.

FIRST MORTGAGE PROGRAMS

Conventional Loans

CBC Conventional 97 Loan Program
The CBC Conventional 97 program is a conventional first mortgage with no max income limit for qualifying. This loan is fully amortized for a 30-year term and is combined with the CBC down payment assistance loan for closing costs. You can own a home and use this program to buy a new primary residence.

CBC Conventional Loan Program
The CBC Conventional program is a conventional first mortgage with reduced interest rates. This loan has income limits that are 100% of the AMI. This loan is fully amortized for a 30-year term and is combined with the CBC down payment assistance loan for closing costs.

Government Insured Loans

CBC DPA Edge Loan Program
The CBC DPA Edge program is a FHA first mortgage with no max income limit for qualifying. This loan is fully amortized for a 30-year term and is combined with the CBC down payment assistance loan for closing costs. Max Purchase price is equal to FHA Loan Limit for the county.

CBC Rate Advantage Loan Program
The CBC Rate Advantage program is a FHA first mortgage with 115% AMI income limit for qualifying. This loan is fully amortized for a 30-year term and is combined with the CBC down payment assistance loan for closing costs. Max Purchase price is equal to FHA Loan Limit for the county.

DOWN PAYMENT ASSISTANCE PROGRAMS

The money you put “down” or the down payment on your home loan can be one of the largest hurdles for many first-time home buyers. That’s why CBC offers several options for down payment and closing cost assistance. This type of assistance is often called a second or subordinate loan. CBC’s subordinate loans can be “soft seconds” or “repayment seconds” depending on what is best for the buyers situation.

CBC Soft Second
The CBC soft second can be forgiven after 36 on time payments on your first mortgage. If you miss a payment the 36 on time payments start over from zero.

CBC Repayment Second
The CBC repayment second can be one of the following. 10 year at zero interest, 30 year at 5% interest, 10 year at 2% higher rate than the CBC first mortgage or 10 year at 8%. The type of second you can use depends on which 30 year fixed first mortgage product you are using.

MORTGAGE CREDIT CERTIFICATE TAX CREDIT PROGRAM

Mortgage Credit Certificate Tax Credit Program (MCC)
A federal credit which can reduce potential federal income tax liability, creating additional net spendable income which borrowers may use toward their monthly mortgage payment. This MCC Tax Credit program may enable first-time homebuyers to convert a portion of their annual mortgage interest into a direct dollar for dollar tax credit on their U.S. individual income tax returns.

Within Reach

Some of the Key benefits of Within Reach

Down Payment assistance amounts 3.00% or 4.50% of the 1st mortgage total loan amount.
DPA Grant – no repayment required!
620 or higher credit score!
Conventional, FHA, USDA, VA programs
Seller Credit of 6% is allowed.
Gift funds are allowed!
Grant can be used for down payment and/or closing costs.
Borrower(s) not required to be First Time Homebuyers.
Income Limit is based on qualifying income used for transaction, not household income.

Minnesota Housing – Start Up

This first-time homebuyer program is meant to promote affordable interest rates and help homeowners better tackle their down payments and closing costs. Qualified first-time homebuyers must have a credit score of at least 640, they must meet certain income limits and must be able to obtain a mortgage from a lender. Borrowers must also attend a homebuyer education course.

Summary:

Be a first-time homebuyer (you have not owned a home in the past three years).
Must have a credit score of at least 640.
Must meet income limits.

Minnesota Housing – Step Up

This is a loan can be used for home purchase or to help homeowners refinance. The loan is meant to promote affordable interest rates in the state of Minnesota. The monthly payment portion of this Minnesota Housing program is available to help buyers afford closing costs and the down payment of a home purchase. Qualified borrowers need to have a credit score of at least 640, they must meet program income limits and in some cases, borrowers must attend homebuyer education courses.

Summary:

Loan can be used for home purchase or refinancing.
Must have a credit score of at least 640.
Must meet income limits.

Minnesota Housing – Deferred Payment Loan

This loan is meant for first-time homebuyers to help ease the cost of home ownership. There are two loan options, a deferred payment loan and a plus loan. The deferred payment loan can be any increments upto 8,000 dollars. The maximum for the plus loan is higher, up to $10,000 for those borrowers who fit target criteria. Minimum credit score for qualified borrowers is 640. The borrowers must also attend a homebuyer education course. The loan must be repaid when the property is sold, no longer the homestead of the homeowners or the loan is refinanced or paid off.

Summary:

Be a first-time homebuyer (you have not owned a home in the past three years).
Two loan options — can borrow upto $8,000 or upto $10,000.
Minimum credit score of 640.

Minnesota Housing – Monthly Payment Loan

This program is designed to help Minnesota homebuyers afford the costs of purchasing a home. Minnesota Housing has a monthly payment loan to help with 5% of the purchase price or $12,000, whichever is greater, to be put towards closing costs and the down payment. Borrowers need to get a Minnesota Housing first mortgage loan as well, which is either a Start Up (first-time homebuyers), Step Up (refinancing), or MCC (mortgage credit certificate). The ten-year loan term comes with monthly payments with an interest rate equal to first mortgage rate. Qualified borrowers need a minimum 640 credit score and must meet program income limits. Borrowers also need to attend a homebuyer education course.

Summary:

Loan towards closing costs and down payment.
Ten-year loan term with monthly payments.
Minimum 640 credit score.
Qualified borrowers must attend homebuyer education course.

Down Payment Assistance Programs in Minnesota. How to get down payment assistance in Minnesota

Thanks for trusting us with the purchase or refinance of your home.

Down Payment Eligibility. The first step to getting down payment assistance in Minnesota is to find out all of the programs that you are eligible for. There are programs based on income, household size, county, occupation, etc. Use this great Down Payment Assistance Tool to find out what you qualify for.

Types of Down Payment Assistance in Minnesota

Down Payment and Closing Cost Assistance. Many of the programs available in Minnesota will pay your down payment, closing costs or both. MHFA is the largest down payment assistance organization in Minnesota and I am one of the top originators for MHFA down payment assistance. One of the things to remember for using MHFA for down payment and closing cost assistance is that the loan officer doing your down payment assistance has to also do you main loan. It is not allowed to have two different loan officers from different companies each doing a part.

Reduced Mortgage Insurance Loans. One of the benefits of using Down Payment assistance is the availability of reduced mortgage insurance first mortgages. Reduced mortgage insurance can save borrowers upto 25% in mortgage insurance costs.

No Mortgage Insurance Loans. A great program from several providers including the MHFA Preferred Risk Sharing loan can save borrowers hundreds of dollars. On a $175,000 dollar loan for a borrower with a 680 credit score, a borrower would save almost $205 per month.