Recovery funding supports $41 million home buying program
$41 million in new funding is available for first-time homebuyers to purchase homes in Minneapolis and Saint Paul, supported by Recovery Act dollars. The Minneapolis–Saint Paul CityLiving program offers below-market interest rates on mortgages as well as downpayment- and closing-cost assistance.
The CityLiving program was not available to homebuyers in 2009 due to the effect of 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 downpayments and closing costs.
For nearly 30 years, Minneapolis and Saint Paul have worked together through the CityLiving program to help 30,000 first-time homebuyers enjoy the benefits of city life.
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 downpayment 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 www.livemsp.org where you can: learn about all of the Minneapolis and Saint Paul neighborhoods, read resident testimonials, find other homebuyer incentives, and peruse real estate listings by neighborhood.
The CityLiving program also offers homebuyer education workshops at a low cost through the Home Ownership Center (651-659-9336). The workshops provide first-time homebuyers comprehensive information to prepare them for home ownership.
How the CityLiving program is funded
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.
A list of the participating lenders and program information can be found at www.stpaul.gov/cityliving.Dec. 15, 2009
Published Feb. 9, 2010