$41 million grant to boost Minneapolis-Saint Paul CityLiving home buying programs
Minneapolis Mayor R.T. Rybak and Saint Paul Mayor Chris Coleman announced on Tuesday, Feb. 9, that $41 million in new funding is available for first-time homebuyers to purchase homes in both cities. The funds are being made available through the Minneapolis–Saint Paul CityLiving program which offers below-market interest rates on mortgages as well as down payment- and closing-cost assistance.
The mayors made their announcement at an event on Minneapolis Northside at a newer home that was built through the Minneapolis Home Ownership Works program for first-time homebuyers. They were joined by Minneapolis Council Member Don Samuels (Ward 5); Jerry Boardman, Freddie Mac; and Emily Green, Sandy Green Realty.
This program is funded under a program known as the HFA Initiative, under which Fannie Mae and Freddie Mac have purchased bonds under an agreement with the Treasury and the Federal Housing Finance Agency. The purchase of the bonds is funded with stimulus money and enables the Cities to provide financing for first-time homebuyers at below-market interest rates.
The CityLiving program was not available to homebuyers in 2009 due to the challenging economic climate on the bond market. In addition to the $41 million available through the loan program, each city has $500,000 available for assistance with down payments and closing costs.
Details of the loan and assistance program
- Applicants must be first-time homebuyers, purchasing in either Minneapolis or Saint Paul.
- Offers below market interest rates.
- Offers closing cost and down payment assistance of up to 2% of the mortgage amount. This assistance is in the form of an interest-free loan that is forgiven after seven years of living in the home.
- Homebuyers’ household income cap is $92,290; maximum purchase price is $276,870 for a single-family home. Higher limits are available for two, three, and four unit homes. The homebuyer must occupy the home as their main place of residence.
Visit Home Ownership Center (651-659-9336). The workshops provide first-time homebuyers comprehensive information to prepare them for home ownership.
A list of the participating lenders and program information can be found at www.stpaul.gov/cityliving.
Feb. 09, 2010
Published Feb 9, 2010