Program Temporarily Closed

The City of Saint Paul has temporarily closed the Downpayment Assistance Program, following a high level of interest. Staff are working through the program waitlist in the order received.

What is the Downpayment Assistance Program?

The Downpayment Assistance Program offers eligible homebuyers up to $40,000 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

The Downpayment Assistance Program supports homeownership for low- and moderate-income households and addresses racial disparities in homeownership. It's funded by the Housing Trust Fund.

Eligibility Requirements

  • Applicants must earn 80% Area Median Income (AMI) or less with an asset limit of $25,000 (excluding retirement accounts). See income limits.
  • First-generation homebuyers are eligible to receive up to an additional $10,000.

Learn more about maximum award amounts. 

Homebuyer's Counseling

Buyers must receive homebuyer's counseling from a HUD-approved counseling agency or a member of the Minnesota Homeownership Center’s Homeownership Advisors Network.

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. Please note there is high interest in this program.

Download Full Program Guidelines

Maximum Award Amounts

Program LayerEligibilityMax Award
Regular
  • 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
 Max Available$50,000

Income Limits

The Downpayment Assistance Program uses HUD income limits.

Family Size80% 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 Downpayment Assistance 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.
  • One (1) month of current paystubs for all household income earners ages 18 years old or older.
  • One (1) month 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

Reconfirm Eligibility

You must submit updated financial information to reconfirm eligibility. If eligible, the City will issue a commitment letter of downpayment assistance funds to the lender.

7

Complete Homebuyer Education

Give yourself the resources and tools to become a homeowner. You must complete a HUD-approved homebuyer education course before closing. Here are some local options for homebuyer education:

8

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. 

9

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: February 14, 2025