Saint Paul Home Buyer Programs

There are lots of great programs for first time home buyers and for those who are looking for their next home.  I’ve put together some of the information below to give home buyers what they need to know in order to check the programs out.  Please take a look below!

CityLiving Home Programs
The City of Saint Paul offers mortgage loans and home improvement loans through its CityLiving Home Program, a joint effort shared with the City of Minneapolis. CityLiving loans offer homebuyers an opportunity to purchase St. Paul homes at an interest rate that is generally below market rates. More than 10,000 people have purchased a home through the CityLiving program over the past 20 years. 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 what is known as the Home Stretch Program.  Coordinated by the Minnesota Home Ownership Center, Home Stretch helps to educate people about the home buying process so they can avoid common mistakes and predatory lending.

Then, after the home has been purchased, CityLiving also offers home improvement lending programs for very low-income homeowners. Deferred payment 0% interest due-on-sale loans for basic and necessary improvements like accessibility improvements, lead-based paint removal, heating, electrical, and roofing. Also available are lower interest rate Fix-Up Fund loans which allow you to do more general improvements like room additions and building a new garage.  Read more about CityLiving Home Improvement Loans at the City of St. Paul website.

Invest Saint Paul
I’ve written a little bit about the Invest Saint Paul effort before, but I’m going to write about it again!  Invest Saint Paul is a collaborative effort to revitalize and redevelop four key neighborhoods of St. Paul.  Those neighborhoods 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
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 buyers/borrowers, and 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. Daytons 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
The Sustainable Home Ownership Program, also made possible through the Invest Saint Paul initiative 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. 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.

Down Payment / Closing Cost Assistance Program
The Saint Paul Community Neighborhood Housing 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.

So there you have it.  These are the home buyer assistance programs available to date within the City of Saint Paul.