First-Time Homebuyer Programs

The City of Mankato Housing Department offers two types of first time homebuyer programs; education and financial assistance.

Educational
Home Stretch, geared for the general public, is eight hours of classroom instruction that covers every aspect of the home purchasing process. Professionals in home inspection, lending, real estate, insurance, personal and property safety, credit repair and financial literacy are on hand to share expertise and answer questions. Research has shown that home buyers who have attended Home Stretch courses have had fewer foreclosures than those who don’t attend. Program evaluations report that participants find the course very helpful in guiding them through this important life decision. Home Stretch is required by many first time homebuyer mortgage products. To register for a Home Stretch, please call (507) 387-8636 or register online.

First Home is a basic program geared for residents of rental assisted housing. Families and individuals who participate in the Housing Choice Voucher Program, Affordable Rental Housing Program, Public Housing, Section 42 tax credit properties, Section 236 and 4D tax properties are eligible to apply. First Home is 15-18 hours of classroom instruction taught in a small group (“club”) format. Half of the curriculum is financial literacy; half is home maintenance. Program participants are required to meet individually with a credit counselor who will help them budget and repair credit issues that may prevent them from getting a mortgage approved. Participants are taught basic maintenance that includes hanging light fixtures, clearing drains, changing furnace filters, home weatherization, etc. Program graduates obtain the tools needed to become a homeowner in the future. This course is offered at no cost. To apply for First Home, please call (507) 387-8636.

Financial
Through grants from the local, state and federal government, Housing makes affordable mortgage products and downpayment assistance available to area citizens. Currently we have $6 million of Community Activity Set Aside (CASA) mortgage money from Minnesota Housing that is available to those employed in the City of Mankato who hold Housing Choice Vouchers, or who are graduates of the First Home Program. CASA mortgages carry a below market interest rate and have closing cost and monthly payment assistance available. CASA mortgages can be obtained from seven area partner lenders: Northern Star Bank, Pioneer Bank, Pro-Growth Bank, USBank, Voyager Bank, Wells Fargo Home Mortgage and Wells Federal Bank. The City of Mankato also participates in the Minnesota City Participation Program to provide an additional mortgage product. When funding is available, Housing will offer downpayment assistance to first time homebuyers.