Saint Paul Neighborhood First Time Home Buyer Programs
There are several programs and grant monies available for specific neighborhoods in Minneapolis.
CityLiving MCC Mortgage Credit Certificate
Offers credit of 20% of yearly mortgage interest to offset a federal tax liability (no funds for DP)
Community Neighborhood Housing Services—Mortgage and Assistance Programs
Community Neighborhood Housing Services offers several mortgage and down payment assistance products. Each program has unique funding terms and eligibility requirements. Additionally, there is also a down payment assistance program dedicated just to home purchases in Saint Paul.
Rondo Community Land Trust - Homebuyer Initiated Program Purchase Price Write Down Grant
Homebuyer Initiated Program (HIP) is a homeownership program for low-to-moderate income households. Through HIP, participating households can receive two grants, for between $15,000 and $25,000 each. The grants are meant to help buyers purchase and rehabilitate a home that is available on the real estate market in Ramsey County. The grants are used to reduce the amount a household needs to purchase a home, and to ensure that the home purchased is structurally and mechanically safe and sound. The grant money is used to write down the purchase price of a house currently for sale in Ramsey County. The amount of the grant depends on the home buyer's need and eligibility.
Pohlad Funds
For 55106 zip code – up to $8,000, 0% deferred loan, forgiven if you live in home 7 years. This program does not require you to be a First Time Home Buyer, but if you are one you will need to take the Homestretch class. Available for Single Family Residential, Townhomes, Condos and duplex - no income limits required.
CityLiving Special Assistance Funds
Receive up to $10,000 or 10% of the price of the home (lesser of) at 3% interest, use for Down Payment or Closing Costs. Additional money is available to rehab home if it needs repair or lead based paint repair. Depending on where purchasing, may not have to be a First Time Home Buyer, but you will need to take the Homestretch regardless. Income limit for 1 person $64,702, 2 people $65,800, and 3 people $66,800.
St Paul Heroes with City Living MCC
(Out of Funds)
Receive up to up to 15k if you are: active military, veteran, police officer, firefighter, emergency response personnel, health care workers, teachers and public employees. Receive up to 50% required down payment for program, closing cost assistance(along with gap assistance). This is a 10 year forgivable loan. $83,900 income limit (1-2 people) and $92,290 (3+ people), need to take Homestretch Class and be a First Time Home Buyer to qualify.
Invest Saint Paul
( No longer Available )
The Invest Saint Paul is a collaborative effort to strategically channel city government and private resources into revitalizing and redeveloping four key neighborhoods of St. Paul. Those neighborhoods, which have been particularly challenged by a spate of foreclosures during the recent economic downturn, are Dayton’s Bluff, Frogtown, the Eastside, and the North End. The goal of Invest St. Paul is to turn the tide of foreclosures and draw new residents into these areas.
Make It Possible Program
( No Longer Available )
One aspect of the Invest Saint Paul initiative is the Make it Possible Program, or MPP. Make it Possible is a second mortgage product provided by the Family Housing Fund (FHF). Under the MPP, a 3% down payment is required of home buyers. Borrowers who qualify for a first mortgage representing 80% or less of the appraised value of the property through a private mortgage lender will be able to receive the difference of up to 20% of the remaining value in a second mortgage loaned at 3.5% payable over a 15-year period. This eliminates the need for a buyer to purchase private mortgage insurance when a loan exceeds 80% of the appraised value. MPP loans are made in the name of the Family Housing Fund (FHF) and serviced by Community Reinvestment Fund. Dayton’s Bluff Neighborhood Housing Services (DBNHS) is the program administrator and loan originator of the Make it Possible Program. In addition to helping create new mortgages for homebuyers, MPP can be utilized by existing homeowners to refinance variable rate mortgages into a long-term, fixed-rate mortgage.
Sustainable Home Ownership Program
( No Longer Available )
The Sustainable Home Ownership Program, also made possible through the Invest Saint Paul initiative, is a partnership between the City’s Department of Planning and Economic Development (PED) and the Dayton’s Bluff Neighborhood Housing Services (DBNHS) working together with local lender University Bank and the Family Housing Fund (FHF). This program provides qualified purchasers the option to enter into a Contract for Deed at a rate of 7.5% amortized over a 30-year term with a balloon maturity date in three years or when the purchaser secures a fixed mortgage, whichever occurs earlier. University Bank will finance up to 80% of appraised value and the FHF will finance the remaining balance, minus the purchasers down payment. The new SHOP pilot will help borrowers develop and maintain sound financial and home ownership practices through their first years as homeowners. This program is for homebuyers only. It is not a refinance product.
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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