Get help buying a home, plus help to make repairs.

The City of Shoreview is offering a combination loan which includes down payment and closing cost assistance loans and rehabilitation loan funds to encourage first-time homebuyers to purchase a home in Shoreview and make needed improvements.  Current available dollars for loans are based upon the fund balance for any given period.

Program Guidelines

Loan Amount:

Down Payment Assistance: The maximum loan amount is $15,000, however, the amount borrowed shall not exceed 5% of the purchase price.

Rehab/Home Improvement:  The maximum loan amount is $25,000*

* The maximum combined loan amount shall not exceed $30,000. 

Interest Rate & Loan Term for the Down Payment Assistance:  The interest rate will be below market rate and will be fixed with simple annual interest, with monthly installment payments of interest only.  The interest rate will be set by the City of Shoreview. Payment of principal will be deferred until sale, transfer of title, when the primary mortgage is paid off, or when the property ceases to be owner occupied.    Loan term shall not exceed 30 years.

Interest Rate & Loan Term for the Home Improvement Loan:  The interest rate will be below market rate and the monthly payment fixed.  Maximum term is 15 years.  Loan is due upon the sale, transfer of title, refinance or if the home ceases to be owner occupied.

Loan Security: All loans will be secured by a mortgage in favor of the City of Shoreview. The loan may be secured in a subordinate lien position behind other loans in accordance with the City’s loan subordination policy.  Applicant will be required to obtain title insurance on this loan for the City of Shoreview.

Loan Costs:  Application Fee, Filing fees, title policy, wire transfer fee, prepaid daily interest and credit report will be paid by the borrower(s).

Eligible Use of Funds:  The loan funds can be used for down payment, closing costs and home improvements as specified in the program guidelines.  The borrower cannot receive any portion of these funds as cash.

Borrower Eligibility:

  1. First-Time Homebuyer Status:  Borrower(s) must be a first-time homebuyer (a person or household that has not owned a home within the last three years)
  2. Debt to Income Limit: Borrower’s gross monthly debts cannot exceed 50% of gross monthly income.
  3. Current on Debt Payments: Borrower(s) must be current on any ongoing debt payments.
  4. Credit: Standard underwriting criteria apply including review of a credit report.
  5. Minimum Contribution: There must be a minimum contribution of 5% of the purchase price paid by or on behalf of the borrower.  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.
  6. Education: All applicants must have 8 hours pre-purchase education or an online equivalent, as evidenced by an acceptable completion certificate. Applicants may work with eligible counseling agencies that are HUD-approved that have adopted the National Industry Standards for Homeownership Education and Counseling. Applicants who have previously completed their pre-purchase education through an approved provider must have a completion certificate that is dated not more than 12 months prior to closing.

Income Limit:

The total gross annual borrower income cannot exceed 120% of the area median household income.

Property Eligibility:

Down Payment Assistance

  • Single-family homes, townhomes, twin homes or duplexes, condominiums located in the City of Shoreview and to be used as the buyer’s principle place of residence.
  • First mortgage must be a prime/A-rated fixed rate mortgage loan
  • The residential structure (dwelling unit) shall not be located within a flood plain as identified by FEMA
  • Purchase price of the home shall not exceed $303,800.

Rehab/Home Improvement Loan

  • The borrower’s combined mortgage debt including the Shoreview Loan cannot exceed 100% of the property value, based on the taxable market value as determined by Ramsey County for the current year. 80% of the amount of the Shoreview Home Improvement loan will be added to the current value in making this calculation. Applicants may also submit a third party appraisal or market analysis that has been completed within the last 6 months.  Such an appraisal or market analysis is to be obtained by the applicant at their expense.

Eligible Improvements:

Properties that are governed by an active Homeowner’s Association must receive written approval for planned exterior improvements in accordance with the guidelines of this loan program and association by-laws and/or covenants.

Work shall include repairs, replacement, and new construction that will:

  • Correct local or state code deficiencies, health and safety items
  • Improve value of the home (e.g. general home remodeling, home additions, etc.)
  • Improve accessibility
  • Reduce long-term energy costs

Ineligible Improvements:  Landscaping, exterior site improvements, recreational/luxury improvements, working capital, debt service or refinancing of existing debts.


Application and Loan Disbursement Process


Application Process:

The borrower’s first mortgage lender will provide application materials and will collect income and property documentation and submit to NWHP. The borrower will provide bid
information to NWHP for eligible home improvement projects. 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. After loan approval you will be notified to come for a loan closing to sign a Promissory Note, Mortgage and subordination disclosure for each loan (down payment and home improvement).

Loan Costs: Borrowers will be charged a credit report fee and application fee at time of application.  The title policy fee may be financed through the loan.  The recording fees and servicing fees will be paid by the borrower at closing.

Reservation Process: Loan funds will be reserved after receipt of the application, submittal of all documentation listed in the Application and loan approval.

Down Payment Assistance

  1. 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
  2. The borrower must sign the deferred loan not 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.
  3. 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 Title Insurance Policy and copy of the first mortgage executed closing disclosure.

Rehab/Home Improvement Loan

Contractors & Permits: Contractors must be properly insured and licensed by the State of Minnesota when required. Permits must be obtained when required by city code. Two bids are required for work that exceeds $5,000.  Borrowers must attain required bids and can seek assistance from NeighborWorks in this process.

Work by Owner: Work can be performed on a sweat equity basis. Loan funds cannot be used to compensate for labor, only for materials.  The NeighborWorks construction manager must determine that the owner has the ability to complete the work according to industry standards and within the program time requirements.  The cost of purchasing tools and equipment and the delivery of materials are ineligible expenditures.  Materials must be purchased and installed prior to the disbursement of loan proceeds.  When applicable, a signed building permit must be obtained by the borrower.

Total Project Cost: It is the borrower’s responsibility to obtain the amount of funds necessary to finance the entire cost of the work. If the final cost exceeds the loan amount, the borrower must obtain the additional funds. Borrower’s contribution to project cost must be paid prior to release of loan funds.

Work Completion: Bids must be obtained within 60 days of closing on the down payment assistance loan. Weather permitting, work must be completed within 120 days of loan closing.

Disbursement Process: Loan funds will remain in escrow with NeighborWorks until payment for completed work. The following items must be received before the funds can be released:

  1. Final Invoice from each contractor showing all amounts paid and due.
  2. Lien Waiver signed by each contractor.
  3. Completion Certificate signed by each contractor and the borrower.
  4. Permits Closed. Have the inspector sign the permit card.
  5. Final Inspection. Approval by NeighborWorks

Homeowners are required to attain and submit the above required documentation.  It may take up to 10 business days after receipt of above items for NeighborWorks to prepare checks.

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.  The potential changes may impact the maximum/minimum loan amount, loan term, interest rate, and/or qualifications for borrower, property and improvement eligibility.


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