Applications Closed - Reopening November 17th - November 24th

Thank you for your interest in the 2025 Citywide Downpayment Assistance Program. Due to high demand, we've reached our current capacity and are not accepting further applications at this time. If funding remains or additional funding is identified, the program may reopen for applications November 17th - November 24th.

Applications for the 2025 Inheritance Fund Downpayment Assistance Program are still being accepted. For applicants who are direct descendants of property owners who lost their homes due to the construction of I-94 in Rondo or the Riverview Industrial Park in the West Side Flats area. More details about the program can be found here.

What is the Citywide Downpayment Assistance Program?

Administered by the City of Saint Paul, this program helps eligible homebuyers with loan toward purchasing a home in the city. For this cycle, assistance is available exclusively through MN Impact Funds.

Local Funds (No Funds Available)MN Impact Funds (Available Funds)
The Local funds offer eligible homebuyers up to $40,000 through a 15-year deferred term loan at 0% interest to use toward the purchase of a home in the City of Saint PaulMN CHIF offers eligible homebuyers up to $40,000 through a 10-year deferred term loan at 0% interest to use toward the purchase of a home in the City of Saint Paul
  • Downpayment
  • Downpayment
  • Closing costs
  • Closing costs
  • Interest rate buydown
 

Additional funding may be available for first-time homebuyers or those eligible for the Inheritance Fund.

Eligibility Requirements

To be eligible for the program, prospective homebuyers must:

Financing Terms

Local FundsMN CHIF (Available Funds)
Downpayment assistance is offered through 15-year deferred loans at 0% interest. Loans are secured by a subordinate mortgage. Each year of the term, the loan is forgiven at an amortized rate of one-fifteenth of the loan amount. Loan balance is due upon resale, refinance, or loan maturity except when there are no net proceeds.Downpayment assistance is offered through 10-year deferred loans at 0% interest. Loans are secured by a subordinate mortgage.  The loan is fully forgiven at year 10. Loan balance is due upon resale, refinance or loan maturity.

Staff will contact eligible applicants on a first come, first served basis as funding allows.

Download Full Program Guidelines

Reminders

  • Please be patient as the process moves your case forward from application to reservation letter.
  • Buyers should not start shopping for a home until they have been approved and issued a Reservation Letter.
  • Buyers applying with a signed purchase agreement are unlikely to be successful due to their closing time requirements.
  • Based on the affordability gap, borrowers could qualify for up to $40,000.

Maximum Award Amounts

Local Funds
Program LayerEligibilityMax Award

Citywide Downpayment Assistance

  • Earn 80% AMI or less
  • Have less than $25,000 in assets (excluding retirement accounts)

$40,000

First Generation Homebuyer

  • Earn 80% AMI or less
  • Have less than $25,000 in assets (excluding retirement accounts)
  • Have never owned a home
  • Parents have never owned a home or lost most recently owned home to foreclosure

$10,000

 Maximum Available

$50,000

MN CHIF Funds
Program LayerEligibilityMax Award

Citywide Downpayment Assistance

  • Earn 80% AMI or less
  • Have less than $25,000 in assets (excluding retirement accounts)

$40,000

 Maximum Available

$40,000

Household Income Limits

Local Funds uses the HUD income limits.

1 person

$72,950

2 persons

$83,400

3 persons

$93.800

4 persons

$104,200

5 persons

$112,550

6 persons

$120,900

7 persons

$129,250

8 persons

$137,550

9 persons

$145,900

10 persons

$154,200

11 persons

$162,600

12 persons

$170,900

The MN CHIF uses HUD income limits.

1 person

$72,950

2 persons

$83,400

3 persons

$93,800

4 persons

$104,200

5 persons & Up

$106,000

Process

Learn about the Citywide Downpayment Assistance Program process by viewing our roadmap or reading about each step below.

Graphic illustration of the Downpayment Assistance process, outlined below.
1

Prepare for the Program

Take these steps to prepare for the Downpayment Assistance Program:

2

Complete an Interest Form

Fill out an interest form when applications are open. If you’re eligible, staff will send you an application to complete. 

Staff will contact eligible applicants on a first come, first served basis as funding allows. Please note: There is high interest in this program.

3

Complete an Application

Staff will send you an application once the interest form with preapproval is received.

The application requires the same type of information required for preapproval. You must submit the following documents for all income earners who will be on the title to the subject property and signs the mortgage deed, anyone expected to reside in the subject property and who will be obligated to repay one or more underlying mortgage loans (i.e., signs a promissory note for debt secured against the property) but who is not in title to the subject property, and the legal spouse of the mortgagor who will also reside in the subject property. 

  • Most recent year of Federal Income Tax Returns including all W-2s and/or 1099s
    • If you are self-employed, please provide a year-to-date financial income statement with 3 years’ worth of Federal Income Taxes to include all schedules filed to the IRS.
  • Three (3) months of current paystubs
  • Three (3) months of current financial statements for all household members listed above. (Bank account, stocks, bonds, CDs, crypto, etc). Note: Retirement account balances do not count towards the asset limit
  • Current award letters/income statements such as Social Security, pensions, retirement, child support & alimony payments. (If applicable)

Staff members will work with you to complete all the required documents.

4

Confirm Eligibility

Staff members will underwrite the application. If eligible, you will receive a three-month reservation letter of downpayment assistance funds. 

5

Complete Purchase Agreement

Start your home search. You must notify staff when there is a purchase agreement. 

6

Finalize Closing Documents

Staff members will request required documents from the lender. Underwriters will prepare the closing documents to send to the lender/title company. 

7

Closing

Staff members will send closing documents to the title company before closing. The City will wire downpayment assistance funds to the title company on closing day. 

Frequently Asked Questions

Additional Programs and Information

Downpayment Assistance and Homeownership Programs

Please check out the following partner organizations that also offer downpayment assistance and other homeownership programs:

Please also speak to your lender about other downpayment assistance programs that may be available to you.

Homebuyer Education Courses

Homebuyer education courses give you the information you need to be an informed buyer. Check out some options for homebuyer education courses:

Last Edited: September 29, 2025