The Mortgage Scoop

UPDATED POST

The basics of the program work like this:

• must be a first time buyer
• who works in a specific job or field
• earns less than the income limits
• buys in the city limits of St. Paul, MN
• can put in a down payment of 1.75% of the sales price.
• $5,000 is basic assistance, $10,000 if it’s a bank owned home (foreclosed) or vacant home
• The loan for the assistance is forgiven if you live in the property for 10 years

Here are the more exact details of the program from the actual guidelines.

REVISED 7-1-09  Saint Paul Heroes First-Time Homebuyer’s Loan Program
Heroes make a difference in our daily lives by working hard in critical jobs within our community every day, especially during these trying economic times.

PROGRAM EFFECTIVE JULY 1, 2009
For any house in Saint Paul the maximum Heroes loan will be $5,000.
If the house being purchased is a foreclosed or vacant house at the time of execution of the purchase agreement, it may receive an additional $5,000 for a total of $10,000.

PROGRAM PRIOR TO JULY 1, 2009 (see bottom of this page)

Example: FHA loan of $150,000
$150,000 Loan amount
x .035 FHA 3.5% down payment requirement
$ 5,250 FHA 3.5% down payment requirement
x .050 Saint Paul Heroes minimum % Borrower contribution
$ 2,625 Saint Paul minimum $ Borrower contribution

If the Borrower escrow deposit, prepaids including insurance totals at least $2,625 then the
minimum contribution requirement has been met. If the Borrower escrow deposit, prepaids including insurance totals less than $2,625, subtract the escrow deposit, prepaids including insurance and the borrower must provide the balance from their own funds to meet the minimum borrower contribution and may be credited to down payment or closing costs.

There is absolutely no cash back for any reason. The assistance being provided is intended for down payment and closing cost use. If the down payment and closing costs are covered, the choices are either additional down payment or a lesser amount of the second mortgage loan. Decreasing the loan amount leaves money for another borrower. If at the last minute it appears that there may be some unused funds and it is within a couple days of closing, then a principal reduction is absolutely acceptable. This would be permitted so that all the documents would not have to be changed.

Who qualifies?
First-time homebuyer (have not owned their principal residence in the 3 years preceding closing of loan receiving an MCC)

The Program is available to the following full-time employees [full time meaning at
least 32 hours per week] who are;

• Active Military, Active Reserve, National Guard or a Veteran – Qualified Active Duty Service personnel include the U.S. Armed Services or Reserve Forces. Qualified veterans include military members honorably discharged from any branch of the U.S. Armed Forces.
• Firefighters, Emergency Medical Technicians or Paramedics – Sworn paid members of a fire department whose regular duties include fire suppression or prevention, emergency medical response, hazardous materials response.
• Health Care Workers – Certified, accredited, or licensed health care workers who are employed full-time as a medical resident or fellow, dental hygienist, nurse, nursing assistant, pharmacist, pharmacy technician, physician’s assistant, medical technician, technologist, or therapist.
• Police Officers – individuals commissioned as a police officer by a federal, state, regional, county, or municipal or township government, or a public or private college or university; must be sworn to uphold, and make arrests for violations of the federal, state, regional, county, or municipal, or township law or respond to terrorism.
• Teachers – Individuals employed full-time by an accredited or state recognized public school, private school, or federal, state, county, or municipal educational agency as a state-certified classroom teacher or administrator in grades K-12 or higher education.
• Public Employees – Individuals employed full-time by a federal, state, regional, county, or municipal, or township government and postal workers.

Household Income Limits:
Homebuyers who have household income at or below the following:
Non-targeted areas 1 – 2 persons =:$83,900 3- more persons = $92,290
Targeted areas: 1 – 2 persons = $92,290 3- more persons = $92,290

Eligible Properties:
• Single family homes including 2-4 units, townhomes and condominiums located anywhere within the political jurisdictional boundaries of the City of Saint Paul, Minnesota.

The maximum purchase price limits are as follows:
1 unit = $276,870
2 unit = $389,205
3 unit = $470,472
4 unit = $584,666

Eligible Financing
The Program must be used in combination with the Take Credit! Program and any 30 yr,fixed-rate FHA, VA, RHS, or conventional loan acceptable to Fannie Mae or Freddie Mac loan product that is generally considered to be an “A” or “prime lending product” originated through participating lenders. Program loans are not eligible for use with subprime, interest-only loans or balloon loans, or adjustable rate mortgages (ARMS). No stated income loans.

Loan Terms
• Zero percent interest
• No monthly payments
• Minimum loan – $1,000 • Maximum loan – $15,000
• Repayable when the primary mortgage is paid off, when the home is no longer the primary residence or when the home is sold.
Considered a ‘special mortgage” under the terms of Minnesota Statutes 58.13 Loans. Loans will be separately secured by a Second Mortgage and Promissory Note.
• Loan will be forgiven if borrower resides in the home as their primary residence 10 years or longer.

How to apply :

Interested homebuyers must work with a TakeCredit! participating mortgage lender to determine eligibility for a Mortgage Credit Certificate (MCC) and a Saint Paul Heroes First-time Homebuyer’s Loan Program loan. The Heroes loan is only made in conjunction with a TakeCredit! MCC.

PROGRAM PRIOR TO JULY 1, 2009

To aid in this effort, the Housing and Redevelopment Authority of the City of Saint Paul, Minnesota (HRA) created the Saint Paul Heroes First-time Homebuyer’s Loan Program (Program) which will provide up to $15,000 to homebuyers purchasing homes/properties within the political boundaries of the City of Saint Paul in conjunction with the Minneapolis – Saint Paul Housing Finance Board’s Take Credit! Program. The HRA requires a minimum borrower contribution equivalent to 50% of the required down payment.

ORIGINAL POST ON 6/11/2009

I am a preferred lender for the new Saint Paul Heroes First-Time Home Buyers Loan Program that was created to honor those who dedicate their lives to serving the community. the Homes for Heroes program in St Paul, MN provides a loan up to $15,000 to purchase a home in Saint Paul that can be used toward downpayment and closing costs. 

Those eligible include:

Active Military, Active Reserve, National Guard or a Veteran-Qualified Active Duty Service personnel include the U.S. Armed Services or Reserve Forces. Qualified veterans include military members honorably discharged from any branch of the U.S. Armed Forces.

Firefighters, Emergency Medical Technicians or Paramedics – Sworn paid members of a fire department whose regular duties include fire suppression or prevention, emergency medical response, hazardous materials response.

Health Care Workers – Certified, accredited, or licensed health care workers who are employed full- time as a medical resident or fellow, dental hygienist, nurse, nursing assistant, pharmacist, pharmacy technician, physician’s assistant, medical technician, technologist, or therapist.

Police Officers – Individuals commissioned as a police officer by a federal, state, regional, county, or municipal or township government, or a public or private college or university; must be sworn to uphold, and make arrests for violations of the federal, state, regional, county, or municipal, or township law or respond to terrorism.

Teachers – Individuals employed full-time by an accredited or state recognized public school, private school, or federal, state, county, or municipal educational agency as a state-certified classroom teacher or administrator in grades K-12 or higher education.

Public Employees – Individuals employed full-time by a federal, state, regional, county, or municipal, or township government and postal workers.

 
Loans may be used toward:
    • Up to 50% of the required down payment fees 
    • Covering closing costs 
    • Lowering the principal of the mortgage

Terms of the loan: 
    • Zero percent interest 
    • No monthly payments 
    • Repayable at the time you sell your home 
    • Loan will be forgiven if borrower resides in the home for longer than 10 years

Eligible Borrowers and Income Limits: 
First-time Homebuyers who qualify or a fixed rate FHA, VA, RHS, Fannie Mae or Freddie Mac insured loan product through participating lenders in conjunction with the Take Credit!! Mortgage Credit Certificate program and have

Household income at or below the following: 

                                    1 – 2 Persons             3 – more persons
Non-Targeted Areas            $83,900                        $92,290
Targeted Areas                   $92,290                        $92,290

June 11th, 2009 | Tags: bank owned, Down payment assistance, First Time Home Buyer, special loans, special mortgages | Category: First Time Home Buyer, Loan Programs | Subscribe to comments | Leave a comment | Trackback URL