Down Payment Assistance Deferred Loan

What is Down Payment Assistance Deferred Loan?

Down Payment Assistance Deferred Loan is a deferred second loan for homebuyers in St. Louis Park, Minnesota.

• St. Louis Park city deferred DPA. Up to $20,000 0% deferred second. Income $117,300-$124,900. 640 FICO. FTHB required. SLP city limits only.
• The City of St. Louis Park Down Payment Assistance Deferred Loan provides up to $20,000 in deferred 0% second-mortgage DPA to first-time homebuyers purchasing a primary residence within the City of St. Louis Park, Minnesota (Hennepin County). Funded through St. Louis Park Housing Authority and federal CDBG/HOME, the assistance is structured as a 0% interest deferred second mortgage with no monthly payments, due in full upon sale, refinance with cash-out, transfer of title, or non-owner-occupancy. Income limits $117,300 (1-2 person) - $124,900 (3+ person). Aligned with 100-110% AMI Minneapolis-St. Paul MSA.
• Funding comes from Local Government, HOME, and CDBG.

Do you have to pay it back?

Down Payment Assistance Deferred Loan is deferred, so no payments are due until the home is sold, refinanced, or the first mortgage is paid off.

• Repayment is triggered by 0% interest deferred second mortgage. Balance due on sale, refinance with cash-out, transfer of title, or non-owner-occupancy.
• The assistance is recorded in 2nd Lien position.
• Forgiveness and repayment terms are set by the program and can change — confirm them on the official program page before applying.

Who qualifies?

Down Payment Assistance Deferred Loan is open to first-time homebuyers and buyers who will live in the home as their primary residence.

What are the income limits?

Down Payment Assistance Deferred Loan limits household income to $124,900.

• The limit applies to total household income, not only the borrower’s.
• Area median income figures are published by HUD and updated annually, so check the current table for the county before relying on a number.

What kind of home can it be used for?

Down Payment Assistance Deferred Loan caps the purchase price as follows: Per MN Housing Start Up Twin Cities-area purchase price limits ($604,400-$659,550).

• Eligible property types include Single-family detached, condominium (project-approved), townhouse, PUD, 1-2 unit owner-occupied.
• New construction is eligible.
• Manufactured homes are not eligible.

Where does it apply?

Down Payment Assistance Deferred Loan serves buyers purchasing in St. Louis Park, Minnesota.

How do you apply?

Applications for Down Payment Assistance Deferred Loan go through the administering agency, which publishes the current terms and the application steps on its own site.

1. 1

   Take a homebuyer education course

   Required by the program, through NeighborWorks Home Partners (HUD-approved) - pre-purchase 8-hour homebuyer education and one-on-one counseling required..

2. 2

   Contact the administering agency to reserve funds

   Funds are reserved through Application via St. Louis Park Housing Division., and are subject to availability.

3. 3

   Work with a lender who handles the program

   Hey Prescott is not a lender and does not accept applications; this page describes the program so a buyer can take it to a lender or housing counselor.