Program Temporarily Closed

The Citywide Downpayment Assistance Program will open again in the first half of 2025. You will be able to begin your application online by completing an interest form that will request a copy of your mortgage preapproval along with an estimate of your income related to program eligibility. Once you complete the interest form, you will receive a full application. These applications will be processed on a first come, first served basis.

What is the Citywide Downpayment Assistance Program?

The Citywide Downpayment Assistance Program offers 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 Paul. Funds can be used toward:

  • Downpayment
  • 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

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.

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

Download Full Program Guidelines

Maximum Award Amounts

Program Layer

Eligibility

Max 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

Income Limits

The Citywide Downpayment Assistance Program uses HUD income limits.

Family Size

80% AMI

1 person

$68,500

2 persons

$78,250

3 persons

$88,050

4 persons

$97,800

5 persons

$105,650

6 persons

$113,450

7 persons

$121,300

8 persons

$129,100

9 persons

$136,900

10 persons

$144,700

11 persons

$152,600

12 or more persons

$160,400

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 household members:

  • 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 for all household income earners ages 18 years old or older.
  • Three (3) months of current financial statements for all household members. (bank account, stocks, bonds, CDs, crypto, etc).
  • Current award letters/income statements such as Social Security, pensions, retirement, child support & alimony payments.
  • If you have full time student household members ages 18 years old or older, proof of educational facility course enrollment/schedule is required.
  • Asset verification related to owned vehicles and owned real estate and businesses
    • Note: Retirement account balances do not count towards the asset limit

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: April 10, 2025