City of Saint Paul First Time Home Buyer Programs

There are many programs available to first time home buyers throughout the City of Saint Paul and in some cases, specific St. Paul neighborhoods.

In particular, the CityLiving Home Program offered by the Saint Paul Home Loan Fund makes home ownership affordable. Through a joint effort shared with the City of Minneapolis, St. Paul offers mortgage loans and home improvement loans through the program. CityLiving loans offer homebuyers an opportunity to purchase St. Paul homes at an interest rate that historically has ranked well below market rates. This program has helped low- and moderate-income families for 20 years. More than 10,000 people have purchased a home through the CityLiving program. Read more information about Saint Paul's CityLiving Home Program.

There is also the Invest Saint Paul program. This collaborative effort is intended to strategically channel city government and private resources into revitalizing and redeveloping four key neighborhoods of St. Paul.  Those neighborhoods are Dayton’s Bluff, Frogtown, the East Side, and the North End.  The goal of Invest St. Paul is to turn the tide of foreclosures and entice new residents into buying real estate in these areas.

The Make it Possible Program, or MPP, 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. 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.

The Sustainable Home Ownership Program 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.

Don't forget about the recently extended First Time Home Buyer $8,000 federal tax credit. Enter into a house contract before April 30, 2010 and close by June 30 to qualify.

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