Important Update

The City of Saint Paul has closed applications for the Downpayment Assistance program, following a high volume of applications. During this pause, staff will process previously submitted applications in the order received.

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Overview

The Downpayment Assistance Program (DPA) was developed to support the wealth-building opportunities provided by homeownership to low- and moderate-income households and to address racial disparities in homeownership.

Qualified homebuyers earning at or below 80% area median income (AMI) can receive up to $40,000 to use towards a home downpayment, closing costs, interest rate buydown, and/or property inspection for the purchase of a home in the City of Saint Paul. First-generation homebuyers are eligible to receive up to an additional $10,000.

In addition, homebuyers that are eligible for the Inheritance Fund layers may earn up to 100% AMI and can receive up to an additional $60,000 (for a total of $110,000).

The Downpayment Assistance Program is funded by the Housing Trust Fund.

Once the initial information is reviewed, eligible applicants will be placed on a waitlist and staff will connect via phone and email on a first come, first served basis as funding allows. Please note there is high interest in this program.

Download full program guidelines

Waitlist Information

When you are next on the waitlist, staff will reach out to let you know that you will need to obtain a mortgage pre-approval from a lender. Once you have the pre-approval, staff will send you the full application packet. The full application requires the same types of documents and information you will need to provide to apply for a mortgage (such as bank account statements, pay stubs, tax documents, etc.).

Financing

Program Layers

DPA LayerEligibilityMax Award
Regular
  • Earn 80% AMI or less
$40,000
First Generation Homebuyer
  • Earn 80% AMI or less
  • Have never owned a home
  • Parents have never owned a home or lost most recently owned home to foreclosure
$10,000
Inheritance Fund - Generational Wealth
  • Earn 100% AMI or less
  • Be a direct descendant of a property owner whose land was taken for I-94
$50,000
Inheritance Fund - Community Wealth
  • Earn 100% AMI or less
  • Be a direct descendant of a property owner whose land was taken for I-94
  • Purchase a home in historic Rondo
$10,000
 Max Available$110,000

Income Limits

The Downpayment Assistance Program uses HUD income limits.

Family Size80% AMI100% AMI
1 person$68,500$87,000
2 persons$78,250$99,400
3 persons$88,050$111,800
4 persons$97,800$124,200
5 persons$105,650$134,200
6 persons$113,450$144,100
7 persons$121,300$154,100
8 persons$129,100$164,000
9 persons$136,900$173,900
10 persons$144,700$183,800
11 persons$152,600$193,800
12 or more persons$160,400$203,700

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.

Terms

The loan is a 15-year deferred term at 0% interest and secured by a subordinate mortgage. Each year of the term, the loan is forgiven at an amortized rate of 1/15th of the amount of the loan. Upon resale, refinance or loan maturity, the balance of the loan is due, with exceptions when there are no net proceeds.

Process

Downpayment Assistance Process Map

View the process as a PDF

1

Step 1: Interest Form

Fill out interest form and if eligible, you will be placed onto the waitlist.

2

Step 2: Preapproval

Staff members will connect with applicants to submit preapproval/prequalification from lender.

3

Step 3: Application

Staff members will send applications to clients to complete with all the required documents.

4

Step 4: Eligibility

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

5

Step 5: Purchase Agreement

Applicants will start their home search. If there is an executed purchase agreement, staff members must be notified.

6

Step 6: Recertify Eligibility

Applicants must recertify with updated financials for eligibility. If eligible, a commitment letter of downpayment assistance funds is issued to lender.

7

Step 7: Lender Closing Documents

Staff members will request required documents from lender. Underwriters will prepare the HRA Closing Package documents to lender/title company.

8

Step 8: Closing

Staff members send HRA Closing Package to title company (3 business day before closing) and wires the downpayment assistance funds to the title company on closing day.

Program Guidelines

The Saint Paul Housing and Development Authority (HRA) green-lighted updates to the program at its January 11, 2023.

Download full program guidelines

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: October 3, 2024