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By Tyler Thompson · Licensed Real Estate Agent · Updated May 5, 2026

Homebuyer Programs in St. Louis Park, MN (2026)

Population: 49,594 | Median home price: $390,000 | Est. closing costs: ,000 - ,500

Skyline of St. Louis Park, MN

St. Louis Park is a close-in western Minneapolis suburb of about 50,000 residents in Hennepin County, with a median home price near 0,000. The city offers two of the most generous local programs in the metro: the St. Louis Park Down Payment Assistance Deferred Loan, which scales with income up to ,000 (25% of purchase price) for households at or below 50% AMI, and the St. Louis Park First Generation Down Payment Assistance Loan (up to ,000, forgivable at 5% per year over 20 years). Both programs offer an additional ,000 to employees of St. Louis Park businesses or long-term local renters. Buyers can layer in state programs (Start Up first mortgage, Deferred Payment Loan up to ,500, Monthly Payment Loan up to ,000, First-Generation Loan up to ,000), nonprofit options like Homes Within Reach Community Land Trust (St. Louis Park is a partner community), Twin Cities Habitat, Welcome Home DPA, and Community Keys Plus, plus federal programs like FHA and VA. Note: St. Louis Park is excluded from the Hennepin County HRA program because the city operates its own programs.

City Programs in St. Louis Park

St. Louis Park Down Payment Assistance Deferred Loan
Type:
Deferred Loan
Amount:
Up to ,000 (5% of purchase price) standard tier; up to ,000 for households at or below 50% AMI on a sliding scale; additional ,000 available for employees of St. Louis Park businesses or renters who have lived in St. Louis Park six months or longer
First-time only:
Yes
St. Louis Park First Generation Down Payment Assistance Loan
Type:
Forgivable Loan
Amount:
Up to ,000 (5% of purchase price); additional ,000 available for employees of St. Louis Park businesses or renters who have lived in St. Louis Park six months or longer
First-time only:
Yes

State Programs in Minnesota

Minnesota First-Generation Homebuyer Loan Program
Type:
Deferred Loan
Amount:
Up to ,000
First-time only:
Yes
Minnesota Housing Deferred Payment Loan
Type:
Deferred Loan
Amount:
Up to ,500
First-time only:
Yes
Minnesota Housing Monthly Payment Loan
Type:
Repayable Loan
Amount:
Up to ,000
First-time only:
No
Minnesota Housing Start Up Program
Type:
Government-Insured Mortgage
Amount:
First mortgage with as little as 3% down
First-time only:
Yes
Minnesota Housing Step Up Program
Type:
Government-Insured Mortgage
Amount:
First mortgage; can also be used to refinance
First-time only:
No

Federal Programs

FHA Loans
Type:
Government-Insured Mortgage
Amount:
Up to FHA county loan limits ($541,287 floor to $1,249,125 ceiling for single-family in 2026)
First-time only:
No
FHLBA Community Partners Product
Type:
Forgivable Loan
Amount:
Up to $20,000 in home purchase assistance for down payment and closing costs
First-time only:
No
FHLBA First Time Homebuyer Product
Type:
Forgivable Loan
Amount:
Up to $17,500 in home purchase assistance for down payment and closing costs
First-time only:
Yes
FHLBA Workforce Housing Plus+
Type:
Forgivable Loan
Amount:
Up to $15,000 in home purchase assistance for down payment and closing costs
First-time only:
No
Good Neighbor Next Door (HUD)
Type:
Government Property Sale Program
Amount:
50% discount off the list price of HUD-owned homes
First-time only:
Yes
Home Possible Mortgage (Freddie Mac)
Type:
Government-Guaranteed Mortgage
Amount:
Up to conforming loan limits ($832,750 standard / $1,249,125 high-cost in 2026); 3% minimum down payment
First-time only:
No
HomeReady Mortgage (Fannie Mae)
Type:
Government-Guaranteed Mortgage
Amount:
Up to conforming loan limits ($832,750 standard / $1,249,125 high-cost in 2026); 3% minimum down payment
First-time only:
No
HUD $100 Down Program
Type:
FHA-Financed HUD REO Purchase
Amount:
Only $100 down payment required (vs. standard 3.5% FHA down payment). HUD may also pay up to 3% of buyer's closing costs.
First-time only:
No
USDA Rural Development Loans
Type:
Government-Guaranteed Mortgage
Amount:
100% financing (no down payment required); loan amount up to appraised value
First-time only:
No
VA Loans
Type:
Government-Guaranteed Mortgage
Amount:
No loan limit for veterans with full entitlement (0% down at any price); partial entitlement subject to conforming limits ($832,750 standard in 2026)
First-time only:
No

Nonprofit Programs

Community Keys Plus Impact Down Payment Assistance
Type:
Deferred Loan
Amount:
Up to ,000
First-time only:
No
Homes Within Reach Community Land Trust
Type:
Deferred Loan
Amount:
Subsidized purchase price; CLT removes the cost of land from the home price, typically saving tens of thousands per purchase
First-time only:
No
Twin Cities Habitat for Humanity Homeownership Program
Type:
Repayable Loan
Amount:
Affordable mortgage with monthly payments at or below 30% of household income; option to use TruePath Mortgage on the open market or purchase a Habitat-built or Habitat-renovated home
First-time only:
No
Welcome Home Down Payment Assistance
Type:
Forgivable Loan
Amount:
Varies by household need
First-time only:
Yes

How to Apply

Step 1:

Confirm your eligibility. Both St. Louis Park city programs require you to be a first-time homebuyer (no ownership in the past 3 years). Income limits are ,300 for 1- and 2-person households and ,900 for 3+ person households. The First Generation Loan adds an attestation that your parents have not previously owned a home.

Step 2:

Complete a HUD-approved homebuyer education course before closing. Home Stretch (in person) or Framework (online) both qualify.

Step 3:

Contact the Center for Energy and Environment at 612-335-5884 to apply for the Down Payment Assistance Deferred Loan and/or the First Generation Down Payment Assistance Loan.

Step 4:

Get pre-approved with a Minnesota Housing approved lender. Use the lender directory at mnhousing.gov to layer the Start Up first mortgage with the Deferred Payment Loan or Monthly Payment Loan.

Step 5:

If you work for a St. Louis Park business or have rented in St. Louis Park for at least 6 months, you may qualify for an additional ,000 on top of the standard loan. Mention this when you apply.

Step 6:

Find a home located within the City of St. Louis Park that fits your budget and program requirements.

Step 7:

If you are open to a Community Land Trust home, contact Homes Within Reach to explore CLT properties in St. Louis Park. The CLT model removes land cost from the purchase price, often saving tens of thousands.

Step 8:

Submit your final application package, complete underwriting, and close on your home. Stay through the forgiveness milestones to maximize the benefit of the First Generation loan.

Frequently Asked Questions

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