First-generation homeownership program

What is First-generation homeownership program?

First-generation homeownership program is a forgivable loan for homebuyers in St. Louis Park, Minnesota.

• St. Louis Park first-generation forgivable DPA. Up to $30,000 0% (5-yr forgiveness). Income up to 80% AMI ($58,650-$89,400). 640 FICO. FTHB + first-generation buyer required.
• The City of St. Louis Park First-Generation Homeownership Program provides up to $30,000 in deferred forgivable down payment and closing-cost assistance to first-generation first-time homebuyers purchasing a primary residence within the City of St. Louis Park, Minnesota. Funded through St. Louis Park Housing Authority levy, ARPA, and local foundation contributions, the assistance is structured as a 0% interest deferred forgivable loan, forgiven over a 5-year compliance period so long as the borrower maintains owner-occupancy. Income up to 80% AMI Minneapolis-St. Paul MSA: $58,650 (1-person) up to $89,400 (4+ person).
• Funding comes from Local Government, HOME, CDBG, ARPA, and Foundation.

Do you have to pay it back?

First-generation homeownership program is forgiven after 20 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.
• 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?

First-generation homeownership program is open to first-time homebuyers and buyers who will live in the home as their primary residence.

What are the income limits?

First-generation homeownership program limits household income to 80% of the area median income, which varies by county and household size.

• 80% AMI Minneapolis-St. Paul MSA: $58,650 (1-person) up to $89,400 (4+ person).
• 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?

First-generation homeownership program 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?

First-generation homeownership program serves buyers purchasing in St. Louis Park, Minnesota.

How do you apply?

Applications for First-generation homeownership program 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, including first-generation homebuyer-specific curriculum..

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.