The Senate Housing and Finance Committee had a hearing this week on a bill that would appropriate $170 million to help first-generation homebuyers. Assistance is limited to 10% of the purchase price or $30,000 per homebuyer. The loan is forgiven at a rate of 20% per year, which is prorated if the property is sold.
An eligible homebuyer must be at or below 100% of area median income, be a first-time homebuyer, be preapproved for first mortgage, whose parent or prior legal guardian does not or did not own a home at the time of their death and must contribute a minimum of $1,000 to down payment or closing costs.
While this proposal would help all qualifying first generational home buyers, we have a large homeownership gap in Minnesota. In the State of the State’s Housing 2021 report written by the Minnesota Housing Partnership, the organization found, “Racial disparities in Minnesota are among the worst in the nation. While 77% of all white households own their home, 60% of Asian, 50% of Hispanic, 49% of Native American, and just 25% of Black households own their homes.” (SF 3897)