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Downpayment Assistance Program

Saint Paul, Minnesota

Last verified
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Assistance

$40,000

The maximum the program publishes — not an offer

Income limit

$203,700

The household income limit the program publishes

Repayment

Forgivable

Forgiven after 15 years

What is Downpayment Assistance Program?

Downpayment Assistance Program is a forgivable loan for homebuyers in Saint Paul, Minnesota.

  • Saint Paul PED forgivable DPA. Up to $40,000 typical award. 0% deferred forgivable (5-yr). Income $68,500-$203,700. 640 FICO. FTHB required. Saint Paul city limits only.
  • The City of Saint Paul Downpayment Assistance Program (administered by Saint Paul Planning & Economic Development - PED) provides up to $40,000 in deferred forgivable down payment and closing-cost assistance (typical award) to first-time homebuyers purchasing a primary residence within the City of Saint Paul, Minnesota. Funded through Saint Paul HRA, federal HOME/CDBG, ARPA, and local foundation contributions, the assistance is structured as a 0% interest deferred forgivable loan, forgiven over a 5-year compliance period (typical structure - check current PED guidelines for cycle-specific terms) so long as the borrower maintains owner-occupancy. The City explicitly markets this as a deferred forgivable loan that, in practice, functions as a grant if compliance is maintained. Income tiered $68,500 (1-person 80% AMI) up to $203,700 (4+ person 140% AMI ceiling).
  • Funding comes from Local Government, HOME, CDBG, ARPA, and Foundation.

How much assistance does it provide?

Downpayment Assistance Program offers up to $40,000 in assistance.

  • The program asks buyers to contribute $1,000 minimum borrower contribution from own funds.
  • The program can be combined with other assistance, subject to the rules of each.
  • Amounts are the program's published maximums, not an offer — the administering agency determines any individual award.

Do you have to pay it back?

Downpayment Assistance Program is forgiven after 15 years, so a buyer who stays that long does not repay it.

  • Repayment is triggered by 0% interest forgivable loan, forgiven over 5-year compliance period. Sale, refinance with cash-out, transfer of title, or non-owner-occupancy during compliance period triggers proportional repayment of unforgiven balance.
  • 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?

Downpayment Assistance Program is open to first-time homebuyers and buyers who will live in the home as their primary residence.

The program requires

  • First-time homebuyer — with exceptions: FTHB requirement may be waived for qualifying veterans.
  • The home is occupied as a primary residence
  • On credit: 640 minimum FICO per first-mortgage product overlay.
  • A completed homebuyer education course, through NeighborWorks Home Partners (HUD-approved Saint Paul-based counselor) - pre-purchase 8-hour homebuyer education and one-on-one counseling required.
  • Residency: Property must be located within City of Saint Paul, MN.
  • Citizenship or immigration status: U.S. citizen, permanent resident, or qualifying non-permanent resident alien per first-mortgage product overlays.
  • First-time homebuyer required (no ownership of a primary residence in the prior 3 years). Property must be located within City of Saint Paul limits. Income $68,500 (1-person 80% AMI) up to $203,700 (4+ person 140% AMI tier ceiling). Must complete HUD-approved homebuyer education with NeighborWorks Home Partners. $1,000 minimum borrower contribution. 5-year owner-occupancy compliance period (forgiveness over 5 years - typical structure; verify current PED cycle terms). Sale, refinance with cash-out, transfer of title, or non-owner-occupancy during years 1-5 triggers proportional repayment. Up to $40,000 typical award amount per skill note.

The program excludes

  • Manufactured homes
  • Households above $203,700

These are the program's own published rules, not a decision about any individual — the administering agency and a lender determine who actually qualifies.

What are the income limits?

Downpayment Assistance Program limits household income to $203,700.

  • 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?

Downpayment Assistance Program caps the purchase price as follows: Per MN Housing Start Up Twin Cities-area purchase price limits ($604,400-$659,550) when stacked with MN Housing first mortgage.

  • 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?

Downpayment Assistance Program serves buyers purchasing in Saint Paul, Minnesota.

  • The program targets specific areas: Saint Paul PED prioritizes targeted neighborhoods in funding allocations - including Frogtown, North End, Dayton's Bluff, Payne-Phalen, and West Side.

How do you apply?

Applications for Downpayment Assistance Program go through the administering agency, which publishes the current terms and the application steps on its own site.

  1. Take a homebuyer education course

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

  2. Contact the administering agency to reserve funds

    Funds are reserved through Application via Saint Paul PED Housing Division. Pre-purchase counseling intake required., and are subject to availability.

  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.

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