Brooklyn Center Offers Incentive for Renters to Become Buyers
With the help of a federal grant, Brooklyn Center launched a program that would provide first-time homebuyers who live in the city with a deferred loan of between $5,000 and $7,500, provided that they buy a home in Brooklyn Center.
The borrower would have to use at least $1,000 toward the purchase price.
As an extra incentive for people to take advantage of the program, Brooklyn Center would forgive the entire loan, as long as the borrower keeps the home as their primary residence within ten years of closing.
“Home ownership is really important for the economic stability of a neighborhood or a community,” said Jesse Anderson, Brooklyn Center’s Deputy Director of Community Development. “And we’re trying to strengthen that home ownership, help people find housing that’s healthy and help them from an apartment to maybe a home in Brooklyn Center.”
The loan is only available to current Brooklyn Center residents who purchase a home within the city.
Terms:
- 0% APR
- Amounts from $5,000 to $7,500, but cannot exceed more than 10% of the purchase price. Funds can pay up to 100% of closing costs.
- Borrower must contribute at least $1,000 towards purchase price.
- Household income and asset limits apply.
- Must be considered a first-time home buyer.
- Must be a current Brooklyn Center resident.
- The Deferred Loan is 100% forgiven if the borrowers do not sell, transfer ownership, or no longer occupy the property as their primary residents within 10 years of the loan closing.
- Prior to closing, homebuyers must attend a Homestretch Workshop or Framework course offered through a HUD approved counseling agency.
For more information, you can call (612) 335-5884
