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What’s Your
Next Move?
Central Corridor Homebuyer Incentive
and Assistance Programs
Created by the Corridors of Opportunity
Affordable Housing/Transit-Oriented Development Implementation Team
May 2013
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+Buy Smart. Buy Near Transit.
Buy in the Central Corridor.
Why buy near transit?
Living near transit can also make you
healthier. Walking or biking to transit stations
Buying a home near transit makes sense for
can help you build activity into your daily
both your pocketbook and your lifestyle.
routine. It improves air quality and reduces
Many Twin Cities households spend more
fossil fuel consumption.
on transportation than on housing.
For employees of Central Corridor institutions,
Households living in existing light rail
proximity to a light rail line would allow you to
corridors save thousands of dollars on
bypass the stress of rush hour and save money
transportation every year. In addition, home
while you do it!
values may even increase when located
near the light rail.
Housing + Transportation Cost Calculator
Urban Land Institute, MN Regional Council of Mayors has developed an online tool that
allows you to calculate the combined cost of housing and transportation for addresses in the
Twin Cities region. It is based on an affordability index developed by the Center for
Neighborhood Technology.
Calculations can be tailored to a household’s size, income, and transportation habits. It even
allows for comparison between multiple different addresses in the region!
To try it out, visit http://apps.cnt.org/msp/
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What Difference Does It Make?
Homebuyer
Programs
The Joneses are a four-person family looking for a new home. Both parents are
There are a number of buyer
employed on the Central Corridor, and together, they make an annual income of
assistance and incentive programs
$49,380. This places them at 60% of the regional median income. The following
for people interested in buying a
table provides a comparison of some of the factors influencing their decision as
home in the Central Corridor. The
they debate between a location on the Central Corridor and one in the south
following pages provide short
metro.
descriptions of available
Central Corridor
Location
South Suburban
Location
programs, listed by city.
For the most up-to-date
Number of cars needed
Annual miles driven
Miles to work
Commute time
Annual transportation costs
(includes costs of auto
ownership, use and maintenance
and transit costs)
Annual cost of homeownership
(includes mortgage payments,
insuance, taxes, and utilities)
Annual Housing +
Transportation Costs
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7,000
2
<20 minutes
(by foot and train)
16,000
18
>30 minutes
(by car)
$8,900
$16,000
$13,154
$16,476
$22,054
$32,476
This data comes from the H+T calculator using an address in St. Paul and an address in Apple
Valley. It assumes a four person family with two working individuals. Regions Hospital was
used as an employer address. It also assumes that the suburban family drives to work and
requires two vehicles, whereas the Central Corridor family commutes via transit and requires
one automobile.
information about home
ownership programs and
resources, contact the Minnesota
Home Ownership Center at (651)
659-9336 or toll free at (866) 4626466 or visit
http://www.hocmn.org.
Additional resources are available
on the back of this packet.
For your reference, below is a list
of percentages of the 2013 Area
Median Income in the
Minneapolis-St Paul Metropolitan
Area.
For a household of one:
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•
•
60%:
80%:
120%:
$33,900
$45,100
$67,650
For a household of four:
•
•
•
60%:
80%:
120%:
$48,300
$64,400
$96,600
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+ Programs Available In Both
Minneapolis & Saint Paul
Homeownership Assistance
Fund And Home Homeowner
Entry Loan Program
Start Up & Step Up Loan
Programs
Minnesota Housing provides two low interest
Minnesota Housing provides the opportunity for
mortgage loan products. Start Up is a program
eligible homebuyers to receive an interest-free,
for first time homebuyers. Step Up is for
deferred loan to help with downpayment and
homebuyers looking to relocate or refinance
closing costs through the Homeownership
Assistance Fund (HAF) and the HOME Homeowner
The programs provide mortgage financing and
Entry Loan Program (HOME HELP).
also offer access to special loans for down
payment and closing cost.
The HAF program provides up to $5,000 to help
borrowers with down payment or closing costs.
The HOME HELP loan is a deferred interest-free
loan, which must be fully repaid within the first six
years of the loan if the borrower sells or vacates
the property. After the sixth year, 70% of the loan
is forgiven and the remaining 30% is repaid when
Participants are subject to income restrictions. In
addition, home purchase price must fall below
the established limit of $298,125. The Start Up
program is restricted to first-time homebuyers
(someone who has not owned the house they
have lived in over the past three years).
the loan matures, the property is sold, or is no
longer owner-occupied.
You may be eligible for the Homeownership
Assistance Fund, if you meet one of the following
criteria:
•
Borrowers eligible for the MN Housing CASA
Program.
•
Qualify as an eligible target market
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Household earning 60% (or less) of area
median income
For additional information contact Minnesota
Housing, (651) 296-8215 or www.mnhousing.gov.
For more information, visit www.mnhousing.gov.
Bridge to Success Contract for
Deed Program
The Bridge to Success Contract for Deed
program helps homebuyers with credit
challenges through homebuyer education,
financial coaching, a safe and secure contract for
deed and post purchase assistance.
Homebuyers earning 115% or less of the area
median income may be eligible for this program.
More information is available at www.shopmortgage.org.
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Programs Available In Minneapolis
City of Lakes Community Land Trust –
Homebuyer Initiated Program
The CLCLT Homebuyer Initiated Program (HIP) Affordability Investment Grant
helps families and individuals purchase homes that are for sale in Minneapolis.
Grants range from $25,000 to $60,000 depending on household income and size.
Households earning 80% (or less) of area median income may be eligible for this
program.
For more information, contact the City of Lakes Community Land Trust at (612)
721-7556 ext 17 or 18.
Home Ownership Works Program
The Home Ownership Works Program is a federally funded program that
supports a partnership between the City of Minneapolis and approved nonprofit
developers. The program provides a deferred loan of up to $14,999 in
affordability assistance to eligible homebuyers for the purchase of homes
renovated or built by one of the approved non-profit developers.
Households earning 80% (or less) of the area median income may be eligible for
this program.
For more information, call Jackie Nawalany at (612) 673-5255.
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Programs Available in Saint Paul
NSP Homebuyer Assistance
Incentive Program
The City of Saint Paul has down payment assistance available when
Rondo CLT HIP/HOP and
HIP Purchase Price Write Down
Grant
you purchase a property that has been rehabilitated through the
The Homebuyer Initiated Program/ Home Ownership
Neighborhood Stabilization Program.
Program (HIP/HOP) assists families with children that are
Loans are available for up to $14,500 at 0% interest. Funds are in the
form of a 5 year forgivable loan. If the property is sold within 5
years of purchase, the unpaid balance will become due and
payable.
Households earning 120% or less of the area median income may
be eligible for this program.
For more information, visit www.stpaulcommunities.com.
currently in Public Housing or that have a Section 8
Voucher. HIP/HOP participants receive up to $50,000 in
grant money and an additional $20,000 in deferred, and
deferred and forgiven loans.
HIP is a homeownership program for low-to-moderate
income households. Through HIP, households receive two
grants, each for up to $25,000, to help them purchase and
rehab a home that is for sale in Ramsey County.
HIP also provides $15,000 to $25,000 in grant money to
An Opportunity for Ownership
309 Thomas Avenue is a three-bedroom home. Through the City
of Saint Paul’s Neighborhood Stabilization Program, it was
completely renovated to like-new condition and meets energy
efficiency standards.
The house is six blocks
from the Western Avenue
LRT station – and a short
train ride from many
amenities and employers!
Eligible buyers could
qualify for up to $14,500
in forgivable loans to use
toward down payment or
closing costs through the
City’s NSP Homebuyer Incentive Program.
To see similar homes for sale, visit www.stpaulcommunities.com
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write down the purchase price of a house currently for sale
in Ramsey County. The amount of the grant depends on
need and eligibility of selected buyers.
Households earning 80% or less of the area median
income may be eligible for this program.
For more information, visit www.rondoclt.org.
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For additional information visit:
Minnesota Home Ownership Center
The Minnesota Home Ownership Center provides up to date information on public and private homebuyer
programs. In addition, they maintain helpful fact sheets and resources about homebuyer education and
counseling. They can be reached at (651) 659-9336 or toll free at (866) 462-6466 or by visiting
http://www.hocmn.org.
LiveMSP
LiveMSP is an online portal that allows current and potential residents to browse neighborhood profiles,
learn about the home buying process, and view a directory of available incentive programs.
www.LiveMSP.org.