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Dakota County Bond Loan

Dakota County Bond Loan

First Time Homebuyer Program & Downpayment Assistance

Homebuyers in Dakota County can now access fixed, low-interest mortgage financing along with a Mortgage Credit Certificate and up to $10,000 in downpayment and closing cost assistance through the CDA First Time Homebuyer Program.

The First Time Homebuyer Program may only be used with 30-year amortizing fixed-rate FHA or VA mortgage loans or HFA Preferred conventional mortgage loans

Interest Rates

  • FHA/VA: 3.75%- Effective rate as low as 2.44% with Mortgage Credit Certificate
  • HFA Preferred: 4.25%- Effective rate as low as 2.76% with Mortgage Credit Certificate

*Interest rates are subject to change

Program Eligibility

  • Homebuyers must be first time homebuyers or someone who has not owned a home in the last three years.
  • Honorably discharged Veterans are eligible whether or not they are first time homebuyers.
  • To be eligible, the Veteran cannot have used a similar program to purchase a home in the past.
  • Properties must be located in Dakota County.
  • Homebuyers must occupy the home as their primary place of residence after purchase.
  • Homebuyers must have a minimum credit score of 640 for HFA Preferred Conventional Financing or 660 for FHA Financing.

Income Limits

  • 1 or 2 person households: $86,600
  • 3 or more person households: $99,500

Maximum Purchase Price: $285,780 for single family homes, townhomes or condominiums.

Downpayment & Closing Cost Assistance

Homebuyers accessing the First Time Homebuyer Program can also apply for downpayment assistance loans of up to $10,000 (depending on household income).

Down payment Assistance Loan Terms

  • Zero percent interest.
  • No monthly payments.
  • Loan must be repaid when the primary mortgage is paid off, or when the home is sold or refinanced. Loan can be pre-paid in full or in part at any time.
  • Borrower must contribute a minimum of $1,000 of their own funds toward the purchase of the home.

Maximum Loan Amounts & Income Limits

  • 10% of the purchase price up to $10,000 for households with incomes at or below 50% of the area median income.
  • 5% of the purchase price up to $7,500 for households with incomes between 51% and 80% of the area median income. 
  • 3.5% of the purchase price up to $7,500 for households with incomes between 81% andthe First Time Homebuyer Program income limits.


Household Size

10% of Purchase

5°/o of Purchase 
3.5% of Purchase 
1 $30,350 $46,100 $86,600
2 $34,650 $52,650 $86,600
3 $39,000 $59,250 $99,500
4 $43,300 $65,800 $99,500
5 $46,800 $71,100 $99,500
6 $50,250 $76,350 $99,500
7 $53,700 $81,600 $99,500
8 $57,200 $86,900 $99,500

All homebuyers (and their spouses) applying for a First Time Homebuyer loan or "Give Yourself Credit" must complete an approved homebuyer education course (Framework or Home Stretch)


Your Dream Home is in Your GRASP!

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