Welcome Home (Sakan) Down Payment Assistance

What is Welcome Home (Sakan) Down Payment Assistance?

Welcome Home (Sakan) Down Payment Assistance is a forgivable loan for homebuyers in Saint Paul, Minnesota, administered by NeighborWorks Home Partners.

• The Welcome Home (Sakan) program provides down payment and closing-cost assistance of up to 30% of a home's purchase price, capped at $50,000, as a 0% interest forgivable loan (10% forgiven per year over 10 years), paired with fee-based/zero-interest (Sharia-compliant) first financing for homes purchased anywhere in Minnesota.
• Up to $50,000 assistance.
• 0% interest.
• Forgiven 10%/yr over 10 years.
• Compatible with Sharia-compliant first financing.
• For down payment, closing costs, or principal buy-down.
• Funding comes from NeighborWorks Home Partners.

How much assistance does it provide?

Welcome Home (Sakan) Down Payment Assistance offers up to $50,000 in assistance.

• Buyer contribution: Borrower must contribute at least $1,000 of their own funds; gifts/grants/loans not acceptable.
• The program can be combined with other assistance, subject to the rules of each.
• Amounts are the program's published maximums, not an offer — NeighborWorks Home Partners determines any individual award.

Do you have to pay it back?

Welcome Home (Sakan) Down Payment Assistance is forgiven after 10 years, so a buyer who stays that long does not repay it.

• Repayment is triggered by Repaid in full if, during the 10-year term, the property is sold, transferred, refinanced, or no longer the borrower's principal residence (otherwise forgiven 10%/yr).
• The assistance is recorded in Subordinate position.
• Forgiveness and repayment terms are set by the program and can change — confirm them on the official program page before applying.

Who qualifies?

Welcome Home (Sakan) Down Payment Assistance is open to first-time homebuyers and buyers who will live in the home as their primary residence.

What are the income limits?

Welcome Home (Sakan) Down Payment Assistance limits household income to 130% of the area median income, which varies by county and household size.

• Gross household income from all sources <= 130% of HUD Minneapolis/St. Paul Metro AMI.
• The limit applies to total household income, not only the borrower&rsquo;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?

Welcome Home (Sakan) Down Payment Assistance caps the purchase price at $766,550.

• Eligible property types include Single Family, 2-4 Unit, Townhouse, Condo, Manufactured, and Cooperative/Mutual (up to 4 units).
• Manufactured homes are eligible.

Where does it apply?

Welcome Home (Sakan) Down Payment Assistance serves buyers purchasing in Saint Paul, Minnesota.

How do you apply?

Applications for Welcome Home (Sakan) Down Payment Assistance go through NeighborWorks Home Partners, 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 Home Stretch, Framework, or Realizing the American Dream (within past 12 months and before purchase agreement)..

2. 2

   Contact NeighborWorks Home Partners to reserve funds

   Funds are reserved with the provider 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.