ST. PAUL, Minn. — There's a new state program to help first-time home buyers with their down payments.

After getting $35,000 for a down payment under the new program, Phillip Ward showed his new home to Lt. Gov. Peggy Flanagan.

The state's new home buyer payment assistance program is for first-generation first-time home buyers — meaning an applicant's parents can not have owned a home.

That state has $150 million and is expected to help 4,500 home buyers.

First-time home buyers, even if they do get help with a down payment or qualify for a lower than 20% down payment, still have to cope with current interest rates which are adding hundreds of dollars a month to a monthly payment — even for the most affordable homes.

In 2021, a $220,000 home with a $22,000 down payment at a 2.65% interest rate would mean a monthly payment of just over $1,000.

Right now, that same home with the same down payment with today's interest rate of over 7% would mean a $1,531 monthly payment.

Getting help with the down payment has made Ward's monthly payments more affordable.

"My original mortgage would have been around $1,300, and $1,100 is doable," Ward said.

If you stay in your home for 10 years, half the down payment loan is forgivable — meaning you won't have to pay it back. If you stay for 20 years, the whole loan can be forgiven.

Homebuyers who previously had a home foreclosed on or whose parents' home was foreclosed can still qualify. Click here for more information.