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City of St. Paul
These programs are available for homebuyers living in the city of St. Paul.
St. Paul Heroes - Currently NOT Funded
First time homebuyer
Must be a first time homebuyer
Type of assistance
Down payment/closing cost assistance
Income limits
$83,900-$92,290
Purchase price limit
$276,870-$584,666
The St. Paul Heroes program was created to honor those who dedicate their lives to serving the community. This program must be used with Take Credit! Mortgage Credit Certificate by CityLiving.
Those eligible can receive:
$5,000 toward the purchase of any home in the City of Saint Paul
and
$5,000 additional loan if the home is Vacant or Foreclosed at the time of execution of the purchase agreement.
Loan Terms:
This is a zero percent interest loan with no monthly payments that is forgivable after 10 years in the home. Loan must be repaid if the home is sold or is no longer the primary residence before the ten-year term.
Loans may be used toward:
• Up to 50% of the required down payment fees
• Covering closing costs
• Lowering the principal of the mortgage
Borrower Eligibility
Must be first-time Homebuyers who qualify or a fixed rate FHA, VA, Fannie Mae or Freddie Mac insured loan product through participating lenders who are one of the following:
Active Military, Active Reserve, National Guard or a Veteran – Qualified Active Duty Service personnel include the U.S. Armed Services or Reserve Forces. Qualified veterans include military members honorably discharged from any branch of the U.S. Armed Forces.
Firefighters, Emergency Medical Technicians or Paramedics – Sworn paid members of a fire department whose regular duties include fire suppression or prevention, emergency medical response, hazardous materials response.
Health Care Workers – Certified, accredited, or licensed health care workers who are employed full- time as a medical resident or fellow, dental hygienist, nurse, nursing assistant, pharmacist, pharmacy technician, physician’s assistant, medical technician, technologist, or therapist.
Police Officers – individuals commissioned as a police officer by a federal, state, regional, county, or municipal or township government, or a public or private college or university; must be sworn to uphold, and make arrests for violations of the federal, state, regional, county, or municipal, or township law or respond to terrorism.
Teachers – Individuals employed full-time by an accredited or state recognized public school, private school, or federal, state, county, or municipal educational agency as a state-certified classroom teacher or administrator in grades K-12 or higher education.
Public Employees – Individuals employed full-time by a federal, state, regional, county, or municipal, or township government and postal workers.
The borrower must also use St. Paul Heroes in conjunction with the St. Paul CityLiving Take Credit!! income tax credit. Because of this, borrowers must complete homeownership counseling through the Homestretch counseling program sponsored by the Minnesota Home Ownership Center. Borrowers must also meet the following income requirements:
Household size
Targeted area
Non-targeted area
1-2 person
$92,290
$83,900
Non-targeted areas
$92,290
$92,290
Property Eligibility
Property must be a single family home (including 2-4 units), townhome, or condo located anywhere within the city of St. Paul. The property must also meet the following purchase price limits
Property Size
Purchase Price limit
1 unit
$276,870
2 unit
$389,205
3 unit
$470,472
4 unit
$584,666
St. Paul CityLiving
First time homebuyer
Non-first time homebuyers must meet additional requirements.
Type of assistance
Reduced interest rate with grant assistance
Income limits
$62,000-$92,290
Purchase price limit
$276,870-$714,592
This program provides mortgage financing at a reduced interest rate and offers 2% or 4% grant assistance to help with down payment and closing costs. The grant does not need to be repaid, but does require that the borrower have a slightly higher interest rate. Subsidy recapture applies under this program. Call us to find out what this means for you.
Borrower Eligibility
This is a first time homebuyer program, but non-first time homebuyers may participate if they meet additional requirements. Call us to see if you qualify.
To qualify for the reduced interest rate and 2% grant assistance, borrower must complete homeownership counseling through the Homestretch counseling program sponsored by the Minnesota Home Ownership Center have an income below $62,000.
Borrowers may qualify for higher income limits if they meet one of the following requirements:
The home is in a targeted area.
The household is comprised of 5 or more people
The loan includes funds for repair or improvement of the home
The property is vacant (Must be on the St. Paul Registered Vacant Buildings
list)
The higher income limits are as follows:
Household Size
Targeted Area
Non-targeted Area
1-2 person
$92,290
$83,900
3+ person
$92,290
$92,290
Borrowers qualify for the 4% grant assistance if they meet the above requirements as well as one of the following:
The buyer has at least one dependent in the household
The home is vacant (Must be on the St. Paul Registered Vacant Buildings
List)
At least $5,000 of renovation work will be done to the home
Property Eligibility
Property must be located within the city of St. Paul and meet the following purchase price requirements:
Size
Targeted Area
Non-targeted Area
1 unit
$369,160
$276,870
2 unit
$475,695
$389,205
3 unit
$575,022
$470,472
4 unit
$714,592
$584,666
Take Credit! By CityLiving
First time homebuyer
Must be a first time homebuyer or purchase a home in a targeted area
Type of assistance
Income tax credit
Income limits
$83,900-$92,290
Purchase price limit
$276,870-$714,592
First Time Home Buyer Mortgage Credit Certificate
This is a 20% federal income tax credit that can be used toward the amount of taxes you owe at the end of each year you live in your home. Because of this credit you can increase your monthly income by amending your W-4 so there are less deductions taken out of your paycheck.
Eligible buyers
Must be first time homebuyer (has not owned a home in the past 3 years) or purchase a property in a targeted area.
Must qualify for a fixed rate conventional, FHA, VA or RHS mortgage product and not financed by a Mortgage Revenue Bond program.
Borrowers must contribute 50% of the required down payment and complete homeownership counseling through the Homestretch counseling program sponsored by the Minnesota Home Ownership Center.
Must meet the following income guidelines:
Targeted areas
Non-targeted areas
1-2 person household
$92,290
$83,900
3+ person household
$92,290
$92,290
Eligible properties
The purchase price of a new or existing single-family house, townhome, or condominium must be located within the city limits of St. Paul and meet the following purchase price guidelines:
Property size
Targeted area
Non-targeted area
1 unit
$369,160
$276,870
2 unit
$475,695
$389,205
3 unit
$575,022
$470,472
4 unit
$714,592
$584,666
*This summary is intended for informational and educational purposes only; other terms, requirements and guidelines may apply. Many of these programs have subsidy recapture requirements, and are only available through approved lenders. Many programs require homebuyer education classes for first time homebuyers. This document is not intended to be an offer of commitment of any kind, including but not limited to: an offer to extend credit, commitment to lend, or an offer to lock into an interest rate. Any such offer can be made pursuant to MN statute § 47.206, subdivision 3 and 4. Any interest rates, fees, and terms presented are for illustrative purposes only and may not be currently available as these programs are subject to change without notice, and are operated on a first come first serve basis.
