The City of Minneapolis is making it easier to buy a home here through its Minneapolis Advantage program – $10,000 easier, to be exact. Altogether, $2 million is being made available for home-buying assistance in this twin city. Two-hundred $10,000 loans will be divvied out, which are forgivable after five years. The main caveat is that homes must be purchased in specific neighborhoods hit hardest by foreclosures.

Successfully piloted in 2008, the Minneapolis Advantage program has already assisted fifty families in buying a home in the city. Funded by the City of Minneapolis and the Federal Home Loan Bank of Des Moines, the program requires potential homebuyers to complete a counseling workshop. The workshop prepares home buyers for the responsibility of home ownership.

Criteria for the Minneapolis Advantage program are as follows:

• Property must be the buyer’s primary residence.

• Buyer must have income of less than 120% of the area’s median income, which is $97,080.

• Buyer must obtain a traditional prime or A-rated, fixed-rate, first home loan or pay with cash.

• A $10,000 loan at 0% interest is forgiven if buyer occupies the home as the primary residence for five years.

• The $10,000 loan may be used for closing costs, down payment and home repairs.

• Property must be either a single-family dwelling or duplex and be located within an eligible neighborhood.

• Depending on income, two options are available. Both are relative to the homebuyer’s income – below 80% area median or below $120% area median. See the Minneapolis Advantage homepage for more details.

Last year, nine percent of the loans were used to purchase boarded up and vacant homes, and 62 percent were used to purchase foreclosed homes. Prior to purchase, 62 percent of the properties were registered as non-homestead. After purchase, however, those homes now have homestead designation.

That’s what this program is doing for the City of Minneapolis. It is not only helping buyers purchase a home, but it’s helping to fill vacant, distressed real estate. It’s a win-win situation for the city’s neighborhoods and home buyers.

How do you apply for a Minneapolis Advantage loan? It doesn’t matter which lender you use, as long as your loan falls within the requirements for the program. Better do it quick, though. Loans are approved on a first-come, first-served basis.

For more information about purchasing through the program, call the Greater Metropolitan Housing Corp. as follows:

• North Minneapolis – (612) 588-3033

• Northeast and South Minneapolis – (612) 378-7985

If you want to start looking for what might be available, click Minneapolis, MN Homes for Sale to see what might fit your criteria.