CityLiving Program helps homebuyers with mortgage options
Buying a home in Minneapolis or Saint Paul will be a reality for families at many income levels, thanks to the return of the CityLiving program. Beginning March 16, the program will offer potential homebuyers in Minneapolis and Saint Paul two mortgage interest rates - one for buyers with cash for a down payment and closing costs and one for buyers who need assistance with a down payment.
The first rate, 4.85 percent, is for homebuyers with cash for a down payment and closing costs. Families who need cash for either a down payment or closing costs can qualify for a mortgage rate of 5.45 percent. These buyers get 4 percent of the amount of the mortgage in cash to be used toward a down payment and closing costs. For example, a homebuyer would receive $4,000 if the original mortgage was $100,000. The $4,000 is not included in the mortgage because the slightly higher interest rate compensates for the money. Households earning up to $133,700 qualify for the program and can purchase a home with a sale price up to $299,000. Program participants do not have to be first time homebuyers.
"Homeownership can be a reality for anybody in Minneapolis," said Mayor R.T. Rybak. "I encourage families, particularly our new arrivals, to take advantage of the CityLiving program." The CityLiving program is a joint effort between the City of Minneapolis and the City of Saint Paul, in partnership with Fannie Mae.
For more than 20 years the cities have worked together to create mortgage loan products which serve low and moderate income families. More than 10,000 people have purchased a home through the CityLiving program.
For information on the CityLiving program, call (612) 673-5282 in Minneapolis and 651-266-6626 in Saint Paul or visit www.ci.stpaul.mn.us.
March 16, 2004
Published Mar. 16, 2004