When the federal tax credit for first-time home buyers expired in the spring, Michael Kunz thought he missed his chance.

“I definitely did feel like I missed out,” he said. But then Kunz learned there’s second chance for first-time buyers – in Minnesota, at least – through a state agency called Minnesota Housing.

At the moment, Minnesota Housing, which helps an average of 2,300 first-time buyers find homes each year, is offering interest rates as low as 3.75 percent on a 30-year fixed rate mortgage. That’s more than half a point lower than this week’s average rate of 4.32 percent on a 30-year fixed mortgage.

Suddenly the outlook for someone like Kunz has improved.

“It opens up my options quite a bit,” he said. “I’m obviously trying to stay within my means and make sure that that mortgage payment will always be payable no matter what happens.”

To qualify for the Minnesota Housing rate, a buyer needs to be buying his or her first home and have a household income of less than $84,000 a year.

Alec Grebis, a loan officer with Bell Mortgage in Edina, said first-time homebuyers taking advantage of the Housing Minnesota loans are able to buy a home worth $10-15,000 more than they would be able to afford with a standard loan.

“The reality is, (the program) has been out there for over 35 years, but very few people take advantage of it because they don’t get educated that the programs exist,” Grebis said.

The low rates for first-time home buyers won’t last. They change from week to week, just like the standard mortgage rates.