St. Louis Park First Generation Down Payment Assistance Loan
The City of St. Louis Park HRA currently provides down-payment/closing cost assistance to first-generation homebuyers in purchasing a home in St. Louis Park.
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About the Loan
- 0% APR.
- No monthly payments.
- Loan amounts dependent on household’s income and the purchase price of the home (not to exceed 5% of the purchase price).
- Owner-occupied single-family or duplex properties.
- Townhomes and condominiums are eligible.
- Purchase price cannot exceed MHFA first time home buyer limits (currently $352,300 and subject to change) for households of 1–4.
- For households of 5+ the purchase price may be increased by 15%.
- Loan approval is subject to credit and program guidelines.
- To ensure funding the application must be submitted at least four weeks prior to closing.
- 0% APR.
- Income limits apply.
- After 20 years the loan is 100% forgiven. The amount owed is reduced by 5% per year until maturity.
- Funds may be used for down payment or closing costs.
- Borrower must be a first generation buyer:
- Borrower does not currently own a home or has not previously owned a home
- Borrower parents and/or legal guardian does not currently own a home, nor have they previously owned a home
- Borrower spouse, if applicable, does not currently own a home and has not previously owned a home
- Borrower spouse’s parents and/or legal guardian does not currently own a home, nor have they previously owned a home
- Borrower(s) must sign the First Generation Homebuyer Affidavit.
- Must occupy this property as their primary residence.
- Must be a legal resident.
- 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).
The current loan terms and conditions stated, including interest rates, do not constitute a commitment to lend or an offer to enter into an agreement, and that such an offer may only be made pursuant to Minnesota Statutes, Section 47.206(3) and (4).