Homebuyer Assistance
New guidelines effective September 29, 2022.
Ramsey County’s FirstHome program assists first-time and first-generation homebuyers with low-to-moderate incomes who are purchasing homes in suburban Ramsey County.
Eligible buyers through the FirstHome program may purchase a home up to $372,600 and qualify for loans that can be used for down payment assistance and closing costs.
Homes for purchase in Saint Paul or North Saint Paul are not eligible for this program. If you're looking to purchase a home in Saint Paul, visit stpaul.gov/DPA.
Steps to get started
- Confirm the home for purchase is in suburban Ramsey County.
- Read the homebuyer requirements (below) to learn more about:
- Income limits.
- Maximum loans available.
- Owner-occupancy requirements.
- Types of homes eligible for assistance.
- Contact your bank, credit union or lending company to reserve funds on your behalf and receive a mortgage pre-approval letter.
- Complete the following through the Minnesota Homeownership Center:
Homebuyer requirements
The FirstHome program requires that all parties to the mortgage be owner-occupants and that the incomes of all, including co-signers, be included in the calculation of income eligibility for buyer assistance.
A maximum investment of $3,726 is required from the buyer, with consideration of earnest money. This principal-only subordinate mortgage must be repaid when the property is sold.
First-time buyer(s)
- May qualify for a loan up to $20,000 for down payment or closing costs with 0% deferred loan interest, due upon sale.
- Must be at or below 80% Area Median Income (AMI), according to household size.
First-generation homebuyer(s)
- May qualify for a loan up to $93,150 for down payment or closing costs with maximum loan 25% of home purchase price. Loan interest forgiven at 5% per year for a 20-year period.
- Must be at or below 80% AMI with 1-3 household members. Buyer(s) with 4 or more household members must be at or below 100% AMI.
- Must sign a document stating they have never owned a home and their parents have never owned a home.
General requirements
- New and existing single-family detached homes, condos, townhouses and duplexes are eligible for FirstHome assistance. The home must be inspected and meet housing quality standards and local codes prior to occupancy.
- Buyers should be able to qualify for a Veterans Administration, Federal Housing Administration, or Fannie Mae-approved conventional mortgage as determined by the private lender, or they must meet the requirements of locally approved initiatives designed to meet affordable housing needs in suburban Ramsey County.
- Buyers must successfully complete an approved homebuyer class, before closing the loan. Online and in-person classes are available through the Homeownership Center.
Lender information
The following forms are required. Most have been revised, and where possible are now fillable forms.
- FirstHome - Policies and Procedures (PDF)
- Ramsey County FirstHome Voluntary Transaction Certification (PDF)
- FirstHome Inspection Housing Quality Standards Analysis (Word)
- FirstHome Check Request (PDF)
- FirstHome Wire Request (PDF)
First-time buyer(s)
- FirstHome- First-time- Reservation & Application Form (PDF)
- FirstHome- First-time- Disclosure and Certifications (PDF)
- FirstHome- First-time- Income Determination Worksheet (Word)
- Ramsey County FirstHome- First-time- Homebuyer Agreement (PDF)
First-generation buyer(s)
- FirstHome- First-generation- Reservation & Application Form (PDF)
- FirstHome- First-gneration- Disclosure and Certifications (PDF)
- FirstHome- First-generation- Income Determination Worksheet- 80% (Word)
- FirstHome- First-generation- Income Determination Worksheet- 100% (Word)
- Ramsey County FirstHome- First-generation- Homebuyer Agreement (PDF)
Other information
- Participation in the program is available to all legitimate lenders, especially lenders who may be working with “emerging market” clientele.
- Ramsey County staff will work with the lender who is responsible for evaluating client eligibility, verifying household income, etc., the buyer and title company to assure that program requirements are addressed, and making documentation available for review by FirstHome program staff, HUD and related designees.
- Lenders may reserve funds on behalf of eligible buyers for up to 60 days while they look for a house.
- Lenders should complete and forward the Wire Request Form at least 14 days prior to the scheduled closing date. Checks are typically issued to the title company. If there is not enough time before closing, lenders may need to arrange to pick up the check or “front” the FirstHome assistance.
- Forms may be sent electronically, especially the appraisal and longer documents.
Prior to issuing a FirstHome check, the file must include:
- Reservation /Application and the HUD 1008.
- FirstHome Income Determination Worksheet
- FirstHome Disclosure and Certifications.
- Buyer-Seller Voluntary Transaction Certification.
- Copy of the property appraisal.
- Copy of the property inspection conducted by an approved inspector.
- Buyer’s HomeStretch or Framework homebuyer education completion certificate.
On closing, the lender is responsible for assuring that the title company forwards the original note, final settlement statement, warranty deed and a copy of the recorded second mortgage to FirstHome staff.
FirstHome program documents should be sent to Portia Jackson.
Contact Us
Have questions? Please email Portia Jackson to receive a timely reply.