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:
- Earn at or below 80% Area Median Income (see income limits)
- Have no more than $25,000 in assets, defined as cash, cash equivalents, vehicles, and equity in owned real estate (retirement account balances do not count toward the asset limit)
- Provide a preapproval or prequalification letter from a lender
- Complete a homebuyer counseling certification course that meets HUD standards from a HUD-approved counseling agency or a member of the Minnesota Homeownership Center’s Homeownership Advisors Network prior to closing on a new home
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.