First-Time Homeownership Program

  1. Overview
  2. Applicant Eligibility
  3. Property Eligibility
  4. Loan Costs
  5. Application & Disbursement

Program Overview

The objective of the First-Time Homeownership Program is to encourage homeownership in Woodbury by providing financing to low and moderate-income first-time purchasers. Low-interest, deferred loans of up to $25,000 are available to income-qualified households who earn no more than $146,000. First-time home buyers are defined as a person or household that has never owned a home or has not owned a home in the last three years.

The purchase price of the affected homes may not exceed $425,000. Single-family detached houses, townhomes or condo units are eligible for this program.

The City of Woodbury Housing and Redevelopment Authority (HRA) has made down payment and closing cost assistance loans available; current available dollars for loans are based upon the fund balance for any given period. The maximum loan amount is $25,000. The loan funds can be used for down payment and closing costs. The borrower cannot receive any portion of these funds as cash.

Interest Rate

The interest rate is below market rate and will be fixed with simple annual interest, with monthly installment payments of interest only. Borrowers aged 65 or older or who are military veterans shall receive a discounted rate. A 0% interest rate is available for first-generation homebuyers. Payment of principal will be deferred until sale, transfer of title, when the primary mortgage is paid off, or when the property ceases to be owner-occupied. Loan term shall not exceed 30 years.

Mortgage & Underwriting

All loans will be secured by a mortgage in favor of the Woodbury HRA. Applicant will be required to obtain title insurance on this loan for the City of Woodbury HRA.

The City of Woodbury HRA Loan Administrator undertakes a full manual underwriting process and encourages potential applicants to secure a pre-qualification to streamline the real estate process. The full manual underwriting process includes review of an applicant's credit, verification of employment and more. When verifying employment to project annual income, the Woodbury HRA Loan Administrator will consider all sources of household income including but not limited to overtime, shift differential, and child support. 

Potential applicants are encouraged to reach out to the Woodbury HRA Loan Administrator as early as possible in the process to facilitate a successful outcome. Successful applicants will submit a loan application at least 30 days prior to the anticipated date of the loan closing.