Home Purchase

FAIM participants can make the goal of home ownership a reality.  There are first time home buyer loan products with down payment assistance as well as payment assistance that can be coupled with the FAIM savings and match to increase the amount of funds available to the account holder.  This enhances the amount that is put down on the home to help make the mortgage payments affordable for the buyer.  FAIM participants should also check with communities to see if they have any down payment programs or affordable home building projects for eligible first time home buyers which they could be part of in their local area.

First-Time Homebuyer:

The U. S. Department of Housing and Urban Development determines a first-time homebuyer as an individual who meets any one of the following criteria: 

• An individual who has had no ownership in a principal residence during the 3-year period ending on the date of purchase of the property. This includes a spouse (if either meets the above test, they are considered first-time homebuyers.  
• A single parent that has only owned with a former spouse while married.  
• An individual who is a displaced homemaker and has only owned with a spouse.  
• An individual who has only owned a principal residence not permanently affixed to a permanent foundation in accordance with applicable regulations.  

An individual who has only owned a property that was not in compliance with state, local or model building codes and which cannot be brought into compliance for less than the cost of constructing a permanent structure. 

There are many types of homes available to first-time homeowners that include manufactured homes, panel homes, single-family homes, and modular homes.  

1. Any modular home must have a permanent location.
2. Mobile homes on wheels not attached to land owned by the FAIM accountholder are not allowed. 
3. First time homebuyers in FAIM shall be pre-qualified early in the program so they have a plan to fix credit issues, seek financing, and get the education to maintain a home. 
4. Contract for Deeds are not allowed. Agencies may hold the paper for MURL homes and Habitat for Humanity homes.
5. Basements for new construction can be done and should be included in total financing package. Standard Rehab loans are not allowed. 
6. FAIM match funds can be applied to the principle balance of a mortgage if the down payment is less than expected.

Asset Training Partnerships

Home Ownership

• Home Stretch
• Neighborworks

Articles
Mortgage-Trapped

More Homebuyer Education Resources

Caritas Family Services  320-252-4121 Serves: Benton, Stearns and Sherburne Counties  The Salvation Army's Money Management Program 218-722-7934 ext. 111 Serves: Duluth and Southern St. Louis County First Homes 507-282-0203 Serves: Olmsted County  SE MN Multi-County HRA 651-565-2638 Serves: Dodge, Goodhue, Wabasha and Winona Counties Headwaters Regional Development  218-444-4732 Serves: Beltrami, Clearwater, Hubbard, Lake of the Woods, and Mahnomen Counties  Thompson Associates  St. Paul, MN 651-644-2710 Serves: Minneapolis and St. Paul Inter-County Community Action Programs 218-796-5144 Serves: Pennington, Red Lake, Clearwater and East Polk Counties

Tri-County Community Action Program 320-251-1612 Serves: Benton, Stearns and Sherburne Counties Lutheran Social Services of Minnesota 218-726-4862 Serves: City of Duluth  Tubman Alliance Stillwater, MN 651-458-0936 x542 Serves: Washington and Ramsey Counties (excluding St. Paul) Midwest MN Community Development Corp 218-847-3191 Serves: Becker and Otter Tail Counties  Wells Fargo Home Mortgage 320-259-3515 Serves: Benton, Sherburne and Stearns Counties NHS of Duluth 218-628-1057 Serves: Duluth  Winona Housing Redevelopment Agency 507-454-3665 x 107 Serves: City of Winona Northside Residents Redevelopment Council Minneapolis, MN  612-335-5924 Serves: North and NE Minneapolis