Buy a Home – Minnesota Housing Homebuyer Programs | Minnesota grant

Buy a Home – Minnesota Housing Homebuyer Programs

Open

Minnesota Housing Finance AgencyMNFirst-Time Homeowner

Funding: Down payment and closing cost assistance amounts vary by program and are typically structured as separate loans sized as a percentage of the first mortgage amount, designed to reduce the cash needed at closing.30 year fixed rate first mortgage loans (Start Up and Step Up) with optional down payment and closing cost assistance loans and mortgage credit certificatesRollingDeadline: Scope: Statewidestate

Updated: Dec 6, 2025

Summary

Minnesota Housing’s “Buy a Home” offerings provide statewide first-time homebuyer and repeat-buyer mortgages with built-in access to down payment and closing-cost assistance, making homeownership more affordable for low- and moderate-income households across Minnesota.

Benefits

down payment assistanceclosing cost assistanceaffordable mortgagetax credit

Who Can Apply

homebuyerfirst-time homebuyerrepeat homebuyer

Eligible Locations

Owner-occupied homes anywhere in Minnesota financed with Minnesota Housing Start Up or Step Up first mortgage products that meet agency income, purchase price, and underwriting limits.

Eligibility

First-time and repeat homebuyers in Minnesota who meet Minnesota Housing income limits (in some areas up to about $185,700 household income), purchase-price limits, and credit guidelines; must work with an approved Minnesota Housing lender and complete homebuyer education when required, especially when using downpayment and closing-cost assistance.

Full Description

Minnesota Housing’s homebuyer programs are the backbone of many Minnesota first-time homebuyer journeys. Through its Start Up (for first-time buyers) and Step Up (for repeat or refinance) mortgages, the agency offers 30-year fixed-rate loans that can be layered with downpayment and closing-cost loans. The Deferred Payment Loan and Monthly Payment Loan products are designed to bridge the cash-to-close gap so borrowers don’t need a full 20% down payment, and some mortgages allow as little as 3% down. Income and purchase-price limits are calibrated by county and household size, with eligibility ceilings that can reach the mid-$100,000s for larger households in higher-cost counties. Buyers apply through a statewide network of Minnesota Housing-approved lenders and are strongly encouraged—or required, depending on the product—to complete homebuyer education, which the agency highlights as a key step for long-term success. The result is a flexible suite of loans and assistance options that help Minnesotans move from renting into sustainable homeownership while keeping monthly payments predictable and affordable.

Verification & Details

Status: Open

Source: mnhousing.gov

Official source → mnhousing.gov

Apply on official siteUpdated Dec 6, 2025

Recommended Resource

First-Time Homebuyer Starter Pack (2025 Edition)

A complete first-time homebuyer toolkit: 9 checklists, timelines, grant guidance, worksheets + editable Excel/Google Sheet budget & affordability calculator.

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More statewide programs

Explore additional grants available throughout Minnesota that complement this opportunity.

Down payment assistance rules

Open

City of Minneapolis – Community Planning & Economic DevelopmentMNFirst-Time Homeowner0 percent interest deferred down payment and closing cost assistance loan with no monthly payments

Updated: Dec 6, 2025

Minneapolis’ down payment assistance loan provides $10,000–$20,000 in gap financing for income-qualified first-time homebuyers in the city, based on household AMI, to cover down payment and closing costs.

Eligible for: First-time homebuyers purchasing a primary residence in Minneapolis who meet income limits (≤80% or 60% AMI depending on assistance level), …

Funding: Provides up to 10000 dollars for households at or below 80 percent of area median income and up to 20000 dollars for households below 60 percent of area median income to help with down payment and standard closing costs.Deadline: Rolling while funds are available; HUD AMI limits are updated annually and the city updates income guidelines each spring.RollingLocalhomebuyerfirst-time homebuyerlow- to moderate-income homebuyerdown payment assistanceclosing cost assistance

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First-Generation Homebuyer Loan Program

Closed

Minnesota Housing Finance AgencyMNFirst-Time HomeownerForgivable down payment assistance loan layered with a Minnesota Housing Start Up first mortgage

Updated: Dec 5, 2025

Minnesota Housing’s now-closed First-Generation Homebuyer Loan Program provided targeted downpayment assistance loans to first-generation buyers using a Start Up mortgage, helping households whose parents never owned a home overcome the upfront cost barrier to homeownership.

Eligible for: First-generation homebuyers (whose parents never owned a home) using a Minnesota Housing Start Up mortgage, meeting agency income and purcha…

Funding: Provided one-time forgivable down payment assistance loans sized to program design and home price; funds are now fully exhausted and new loans are not available.Deadline: Program closed 2024-12-19; Minnesota Housing is no longer accepting First-Generation Homebuyer Loan commitments.ClosedStatewideindividualfirst-generation homebuyerdown payment assistanceforgivable loanfirst-generation homebuyer

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Homebuyer Assistance

Open

City of Saint Paul – Department of Planning and Economic DevelopmentMNFirst-Time Homeowner0 percent interest 15-year deferred downpayment assistance loans plus Minnesota Housing and nonprofit partner programs

Updated: Dec 5, 2025

Saint Paul’s Homebuyer Assistance hub connects residents to the Citywide Downpayment Assistance Program, Minnesota Housing loans and DPA, and a network of nonprofit partners to make buying a home in Saint Paul more affordable.

Eligible for: Homebuyers purchasing in Saint Paul who meet income and purchase-price limits for city and Minnesota Housing programs; many offerings target…

Funding: Highlights the Citywide Downpayment Assistance Program, which offers up to 40000 dollars as a 0 percent interest 15-year deferred loan for down payment, closing costs, and interest rate buydown on homes in Saint Paul, along with other state and nonprofit assistance options.Deadline: Rolling; specific programs like Citywide Downpayment Assistance open and close based on funding, but the Homebuyer Assistance portal remains live and is updated as offerings change.RollingLocalhomebuyerfirst-time homebuyerfirst-generation homebuyerlow- to moderate-income homebuyerdown payment assistanceclosing cost assistanceinterest rate buydownaffordable mortgage

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