When purchasing a property, the term "housing that is affordable" typically is defined as the maximum mortgage payment that a family (household0 at 80% of median income could be qualified for at current interest rates.  In the Twin Cities market, the cost of the average property is about $200,000.  In many instances, buyer's who qualify for less than that amount are eligible for "gap" or "affordability" loans that are made to make up the difference in the purchase price and the household qualification level based on income, debt and credit situation.

 

 

 

 

Many of the homes listed here have the availability of secondary financing to assist in bridging the "gap" between the purchase price and mortgage level the household is qualified for.  The loans are made by charitable foundations, the State of Minnesota, counties and cities and occasionally neighborhood organizations.    These entities typically partner with non-profit organizations to build or re-hab eligible properties and to administer the loans.   There are a limited number of homes available for sale that are eligible for "gap" loans.  The size and terms of the loan vary depending on the sale price of the property and the source of the funds.

 

 

 

Depending on the property, where it is located and the funding source of the development funds, there is no single answer.  Generally, to be eligible, one or more of the following criteria must be met by the purchasing household:

 

Gross (before deductions) income not exceeding  either 115% or 80% of median income for the area.  In the Minneapolis/St. Paul area that figure is currently $87,860/year and $61,120/year respectively.

 

Please refer to the individual property listing which will describe income guidelines, if any, that need to be met in order to be eligible to purchase the property.