Saint Paul first time home buyer programs

St Paul has many programs available to first time home buyers that encompass all neighborhoods within the city.  These programs are covered below.  It also has loans specifically for individual St. Paul neighborhoods.

CityLiving MCC Mortgage Credit Certificate (MCC)

Offers a credit of 20% of yearly mortgage interest to offset a federal tax liability (no funds for Down Payment)

CityLiving Program

The City of St. Paul offers mortgage loans and two types of home improvement loans through its CityLiving Home Programs, a joint effort between the City of Saint Paul and the City of Minneapolis. For more than 20 years the two cities have worked together to create mortgage loan products for low- and moderate-income families. More than 10,000 people have purchased a residence through the CityLiving program. The City of Saint Paul offers mortgage loans and two types of home improvement loans through its City Living Program. Typically free grants are offered up to 3% of the loan amount if you pay a little higher rate (Usually still below market rate) or you can get a slightly lower rate if you don't choose the free grant.  Only available for First Time Home Buyers.

CityLiving loans offer homebuyers an opportunity to purchase St. Paul homes at an interest rate that historically ranks below general market rates.

Here are the qualifications the program expects:

  • Maximum household income for 1-2 people is $77,000
  • Maximum household income for 3 or more people is $84,700
  • Maximum purchase price limit is $254,100
  • 3% grant available for down payment or closing costs with a slightly higher interest rate

The City Living Program also offers homebuyer education and counseling through its Home Stretch Program.  Coordinated by the Minnesota Home Ownership Center, Home Stretch educates people about the home buying process so they can avoid common mistakes and predatory lending. Finally, after the home has been purchased, CityLiving also offers both Code Abatement Loans and Home Repair Loans for very low-income homeowners: The City of St. Paul will give interest-free loans for code abatements for qualifying households that are within 50% of the median income for this metropolitan area. The maximum loan amount is $20,000. The loan is repaid at the time the house is sold.  Amortizing loans at 1% interest are available for home repairs. The Maximum term is 20 years. The maximum loan is $25,000. The maximum income to qualify for this loan is 80% of the median income for the metropolitan area. This loan can only be used to complete code repairs.

Saint Paul Home Ownership Program (HOP)

The Home Ownership Program offers affordable home ownership opportunities in non-impacted areas of St. Paul to buyers with incomes at or below 80% of the metropolitan median income. The City provides up to $30,000 per home in affordability gap financing to the homebuyer in the form of a deferred loan due and payable at the time of sale of the property. The Home Ownership Program is a partnership between the City of Saint Paul and the Greater Metropolitan Housing Corporation.

Down Payment / Closing Cost Assistance Program

Since 1981, Saint Paul Community Neighborhood Housing Services has invested more than $21,200,000 in housing services and has assisted more than 8,500 families and individuals through direct loans, consultations, and technical assistance.  The organization offers a Down Payment and Closing Cost Assistance Program which provides up to $3,000 to eligible individuals or families on qualified housing.  Community NHS’s primary clients generally have household incomes below the metropolitan median income and/or whose credit histories may restrict their opportunities to receive loans through conventional lenders.

The Pre Purchase Workshop

Coordinated by the Home Ownership Center, provides comprehensive information about the home purchasing process and prepares potential buyers for home ownership. The Housing Maintenance Workshop, conducted at Northside Neighborhood Housing Services, provides training on general property maintenance such as furnace function and minor plumbing repairs.

Buying your first home can be overwhelming. Let us help!  We are committed to finding you any grant monies or assistance programs available to you.  Our buyer agent services are FREE!  Please contact us for more information.  We have assisted hundreds of first time home buyers and look forward to the opportunity to assist you!

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