St. Louis Park: Down Payment Assistance

The City of St. Louis Park HRA currently provides down-payment/closing cost assistance to first-time homebuyers in purchasing a home in St. Louis Park. Employees of St. Louis Park businesses could be eligible for additional funds to encourage them to live where they work.

The guidelines below are subject to change at any time without notice. Loan funds are subject to availability. Please call us at 612.335.5884 for complete details.

To ensure funding we need a signed and executed purchase agreement and the application must be submitted at least four weeks prior to closing.

Loan Terms

  • Borrower must be considered a first time homebuyer as defined by someone who hasn’t owned a home within the last 3 years.

  • 0% APR with loan amounts up to $15,000. Not to exceed 5% of the purchase price.

  • Additional $5,000 for employees of St. Louis Park businesses. 

  • Income limit of 100% of AMI based on household size of 2 or less.

  • Income limit of 115% AMI based on household size of 3 or more.

  • After 20 years the loan is 100% forgiven. If the home is sold, transferred or no longer owner occupied 100% of the loan is due. 

  • Closing costs apply

  • Prior to closing the homebuyer(s) MUST attend a Home Stretch workshop or other valid homebuyers course offered through an approved counseling agency by the US Department of Housing and Urban Development (HUD).

Property Eligibility

  • Single family homes, townhomes or condominiums.

  • Must be owner-occupied.

  • Purchase price cannot exceed MHFA first time home buyer limits (currently $330,100 and subject to change).