First Homes assists homebuyers
First Homes helps homebuyers in two ways:

First Homes works closely with developers to build quality homes at starter home prices.

Then, First Homes offers homebuyers financial assistance to reduce monthly mortgage payments, making home ownership affordable to families on a limited budget. Families often are surprised to find monthly mortgage payments for new homes are comparable to what they were paying for apartments.
First Homes assistance is available to individuals and families who meet certain maximum and minimum income requirements based on family size.

Although the program's name is First Homes, previous or current homeowners can participate in the program.

Buyers must have a credit rating that allows them to qualify for a mortgage. A First Homes-certified lender will determine whether you qualify.

First Homes offers two methods of financial assistance, which are determined by need:
  • Gap loans: This assistance is a low-interest deferred loan that allows homeowners to have a smaller primary mortgage and keeps the monthly mortgage payments manageable for households with limited incomes. Gap loans are repaid when the home is sold.

  • Community Land Trust (CLT): In this financing option, buyers purchase and receive a deed to the home and receive a 99-year, renewable lease to the lot on which their home is built. By not paying for the land, the homebuyer receives a benefit of at least $40,000, making the homes very affordable.

When the homeowner chooses to sell the home, First Homes Community Land Trust has the first option to purchase it. Homeowners will receive all the equity they have earned and half the appreciation in value of the home. The remainder of the appreciation is used by First Homes CLT to help ensure a permanent supply of starter homes in the Rochester area.

First Homes-certified lenders can answer detailed questions about these financial assistance options. In addition to First Homes assistance, buyers may qualify for other programs that can reduce down payments, closing costs and monthly payments.
E-mail
Telephone
(507) 287-7117
Fax
(507) 282-4938
Mailing Address
2200 Second St. SW, Suite 300 Rochester, MN 55902-4125
Directions to our office
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Rochester Area Foundation