State Still Offering First-Time-Buyer Money During Shutdown

With all of this talk about the state shutdown and what it would do, I decided to call the Minnesota Housing Finance Agency (MHFA) office. This department runs the state's largest funding of affordable housing, rehab and first-time-buyer loan programs. Guess what, they were open for business. The state apparently identified certain areas as ciritical and this was one of them. As a result, first-time buyers wanting this program can still obtain it. Lenders can still originate, process and close loans through the MHFA as normal.

This is great for those that need this program, and the demographic is specific in regards to income and sales price restrictions of homes. However, the drawback is the potential repayment for saved monies if you sell your home too quickly. That is why normal loan programs are still great alternatives and in many cases a better deal then a MHFA loan. The HFA loan was originally set up as a first-time homeowner program but has grown well beyond that. The loans that are MHFA loans are all underwritten under normal loan guidelines, as well as the additional guidelines for the state.

To find out more you should contact a lender and have them go through the specifics with you. It's just nice to know that some of those state employees are still working.

By the way... I know a good loan guy to call... wink wink.