HRSR INFORMATION 04-17-1996 - Laserfiche WebLink

Home Browse Search

MINNESOTA HOUSING FINANCE AGENCY • 1996 MINNESOTA CITY PARTICIPATION PROGRAM (MCPP) FACT SHEET The 1996 interest rate will be 6.95% (7.708% Annual Percentage Rate), funding $34,483,209 among 61 cities throughout Minnesota. Individual city allotments range from $100,000 to $4,423,606. Discount points charged to the home seller will be 11/2 points, for both existing and new construction (2 and 2 1/2 under the MMP). Program term runs from April 18, 1996 to December 17, 1996. Cities have exclusive use of their allotment for the first 6 months (until October 17, 1996) with unused funds placed in a combined statewide pool for the final 2 months of the program. Maximum adjusted income limits are $43,650 in the 11-county Twin Cities metropolitan area; $43,840 for Olmsted County; and $37,200 for the balance of the state. (These are federal maximums - cities may set lower limits if desired. See the MCPP insert for individual city limits.) Maximum home purchase price ("acquisition cost") limits are as follows: 11- county Twin Cities metropolitan area and St. Louis County: $95,000 (existing) / $95,000 (new construction); Clay County: $91,168 (e) / $95,000 (n); Benton and Stearns counties: $78,545 (e) / $95,000 (n); Houston County: $73,100 (e) / $95,000 (n); Balance of State: $77,540 (e) / $95,000 (n). (These are federal maximums - cities IP may set lower limits if desired. See the MCPP insert for individual city limits.) MCPP funds may only be used to finance properties located within the jurisdictional limits of the participating City or County (e.g.: Duluth funds cannot be used in the adjoining village of Hermantown). Some cities may have additional subsidies available, or may impose additional guidelines. MHFA will not enforce or administer any individual city guidelines. Lenders should contact the individual city administrator for details. All MCPP loans must be done in compliance with the MHFA Mortgage Program Procedural Manual. With the exception of discount points, lender compensation, and added city guidelines, MCPP loans are processed identically to MMP loans. Lenders must specify the city (or county) allotment name at reservation. The Homeownership Assistance Fund (HAF) program is also available with MCPP loans to provide help with entry costs and monthly payments (as with the MMP). Lenders will net 2 1/2 points for each loan closed and sold to MHFA under the MCPP (1/2 point higher than the MMP). Lenders must be under contract with MHFA. Some cities have chosen only a • selected number of lenders to originate loans for their programs, while most cities have authorized all lenders currently under contract with MHFA to originate loans for their programs. Please see the MCPP insert for a complete listing.