Hi Amy, good question. I am currently working with a couple who, after looking into a few different first-time home buyer programs, decided against the idea!
There are great programs, such as down-payment assistance in the form of 0% or very low interest loans, but these programs often times just add to your monthly payment. As many of us live pay check to pay check, this is not super desirable.
There is a nice program right now that allows a first time buyer to purchase a home with 3% down without having to pay mortgage insurance. Mortgage insurance is designed to protect the lender not you, the home buyer and it is a terrible waste of money . If you were to purchase a $150,000 home, you could save about $100 per month!
Here are some highlights:
â€¢ No upfront or monthly mortgage insurance
â€¢ Only 3% downpayment needed
â€¢ Minnesota Mortgage Program income limits
â€¢ Lower financed loan amount
â€¢ Lower mortgage payment
â€¢ 30-year fixed rate
â€¢ Owner-occupied single-family dwellings
â€¢ Downpayment can be gifted funds
Hope this helps a little!