Downpayment Assistance

The Downpayment Assistance Program provides financial assistance for homebuyers at or below 60% Area Median Income (AMI). Qualified homebuyers can receive up to $40,000 for a home downpayment, closing costs, and/or property inspection.

The program was developed to protect and preserve naturally occurring affordable housing in neighborhoods vulnerable to displacement and gentrification pressures.

The Downpayment Assistance Program is funded by the Housing Trust Fund, with support from Minnesota Housing.

Download Full Program Guidelines (PDF)

Eligibility

Homebuyers must:

  • Owner occupy and register as a homestead with Ramsey County throughout the loan term;
  • Have net assets at or under $25,000; and,
  • Earn at or less than 60% Area Median Income (AMI). AMI is based on the number of people in a household:
    • 1 person: $43,440
    • 2 people: $49,680
    • 3 people: $55,860
    • 4 people: $62,040
    • 5 people: $67,020
    • 6 people: $72,000
    • 7 people: $76,980
    • 8 people: $81,900
    • 9 people: $86,900
    • 10 people: $91,850
    • 11 people: $96,800
    • 12 people: $101,750

Home must be:

  • In compliance with current zoning and code requirements;
  • 2 units or less;
  • Purchased at or less than $256,000(single-unit) or $328,000 (two-unit); and,
  • Within an eligible census tract (Marked in blue in the map below)
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Financial assistance can be used for:

  • Home downpayment;
  • Closing costs; and/or,
  • Property inspections

Financing

  • Type: Combined loan (for downpayment and closing costs) and/or grant (for property inspections)
  • Maximum award: $40,000
  • Loan terms:
    • Interest: 0%
    • Term: 30 years, deferred
    • Repayment: Due after 30 years, with exceptions (See next bullet or full program guidelines for more information)
    • Forgivable if: Net proceeds are less than the loan award (See full program guidelines for more information)
  • Grant terms:
    • No repayment required

Reservation and Commitment Process

Please note: Downpayment Assistance is NOT for emergency use. If you need immediate help paying your rent, mortgage or utilities contact Ramsey County at (651) 266-4884.

If you are interested in purchasing a home and reserving Downpayment Assistance, contact a housing advisor to begin the process. You can locate a housing advisor on the Minnesota Homeownership Center’s website.

Due to limited resources, the City cannot guarantee funding for everyone who consults with a housing advisor. Contacting a housing advisor is a highly recommended first step to homeownership, even if you do not qualify for Downpayment Assistance. If accepted, funds are sent directly to the closing agent after the purchase of a new home.

For other information not on this webpage, contact a City staff member by either email or phone. You will receive a response within two business days.

  • EMAIL: downpayment@stpaul.gov
  • PHONE: Call one of the following staff members, and leave a message with name, phone number, email address (if applicable), and the best time to call. 
    • Zong Vang, Loan Specialist
      • (651) 266-6564
    • Jen Bruntlett, Homeownership Specialist
      • 651) 266-6563