Get help to buy a home in Shoreview with Down Payment Assistance
The City of Shoreview is offering down payment and closing cost assistance loans to encourage first-time homebuyers to purchase a home in Shoreview. There are two programs, one that is amortizing (with monthly payments) and one that is due-on-sale (no monthly payments.)
Amortizing: For buyers with incomes below 120% AMI, the down payment assistance is in the form of a loan of up to $30,000 with low interest, paid back in monthly payments.
Due-on-sale: For buyers whose incomes are at or below 80% of the Area Median Income, up to $20,000 is available in a due-on-sale loan with 0% interest and no payments, paid back when the house is sold, transferred, or no longer owner-occupied.
- Applies to single-family homes, townhomes, duplexes, and condominiums within Shoreview city limits.
- Property must be owner-occupied as a primary residence.
- Purchase price may not exceed $425,000.
- Buyers must attend homebuyer education.
- Buyer may not have owned a home within 3 years.
- $25 application fee
- There must be a minimum contribution of 3% of the purchase price paid by or on behalf of the borrower, with a maximum contribution of $10,000. Acceptable sources of the minimum contribution include: earnest money, buyer funds brought to closing and seller paid closing costs. Buyer funds that result from a gift must be accompanied by a gift letter documenting the source as a relative. In no case shall proceeds from a loan or other debt instruments be allowed to meet this minimum contribution criterion.
If you are interested in applying, please share this page with your mortgage loan officer. Loan officers submit the application package on behalf of their customers.
APPLICATION & LOAN DISBURSEMENT PROCESS FOR SHOREVIEW DOWN PAYMENT ASSISTANCE
Application Process: The borrower’s first mortgage lender will provide application materials and will collect income and property documentation and submit to NWHP. Completed applications will be processed by the NeighborWorks Home Partners on a first-come, first-served basis, as funds are available until all program funds are committed. Please allow 30 days to closing from the time of submission of a full package. NWHP will send closing docs to the title company to close concurrently with first mortgage.
Loan Costs: Borrowers will be charged a credit report fee and application fee at time of application. The recording fees and servicing fees will be paid by the borrower at closing.
Reservation of Funds: Loan funds will be reserved after receipt of the application, submittal of all documentation listed in the Application and loan approval.
- Funds will be wired in the approved amount and the Shoreview Loan documents will be sent to the loan closing or title insurance company prior to loan closing.
- The borrower must sign the deferred loan note and mortgage at the closing. The loan closing or title insurance company conducting the loan closing will be responsible for recording the Documentation of the recording must be sent to NeighborWorks. The borrower shall pay the filing fee.
- After the loan closing, the title company must provide NeighborWorks with the original signed Shoreview loan documents, including the Note and Closing Disclosure, the City of Shoreview Insured Title Insurance Policy and copy of the recorded first mortgage and the executed closing disclosure.
Program Disclaimer: The City of Shoreview and the Shoreview EDA maintain the right to at any time to change or discontinue the Shoreview Home Improvement Loan Program. The potential changes may impact the maximum/minimum loan amount, loan term, interest rate, and/or qualifications for borrower, and property.