Down payment assistance rules

Open

City of Minneapolis – Community Planning & Economic DevelopmentMNFirst-Time Homeowner

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.0 percent interest deferred down payment and closing cost assistance loan with no monthly paymentsRollingDeadline: Scope: Localstate

Updated: Dec 6, 2025

Summary

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.

Benefits

down payment assistanceclosing cost assistance

Who Can Apply

homebuyerfirst-time homebuyerlow- to moderate-income homebuyer

Eligible Locations

Owner-occupied homes located within the City of Minneapolis, Minnesota that meet program purchase and property requirements.

Eligibility

First-time homebuyers purchasing a primary residence in Minneapolis who meet income limits (≤80% or 60% AMI depending on assistance level), complete a homebuyer education class, and agree to program terms, including rules about combining city funds and contract-for-deed approvals.

Full Description

The Down payment assistance rules page lays out the key regulations for Minneapolis’ flagship DPA loan. First-time buyers are instructed to review the rules before applying. The city explains that assistance is structured as a loan whose size depends on income relative to area median income: households at or below 80% AMI can receive up to $10,000, while those under 60% AMI can receive up to $20,000 in assistance. Funds can be applied to down payment and standard closing costs on an owner-occupied home within Minneapolis city limits. The page also clarifies that buyers may not stack multiple City of Minneapolis programs on the same purchase and that contract-for-deed transactions require city approval. A completed homebuyer education class is mandatory before using funds, and the city links to approved education providers. These rules make the program a powerful but targeted Minneapolis first-time homebuyer down payment assistance tool, tightly aligned with HUD income guidelines and designed to expand homeownership among lower-income residents.

Verification & Details

Status: Open

Source: minneapolismn.gov

Official source → minneapolismn.gov

Apply on official siteUpdated Dec 6, 2025

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More statewide programs

Explore additional grants available throughout Minnesota that complement this opportunity.

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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Buy a Home – Minnesota Housing Homebuyer Programs

Open

Minnesota Housing Finance AgencyMNFirst-Time Homeowner30 year fixed rate first mortgage loans (Start Up and Step Up) with optional down payment and closing cost assistance loans and mortgage credit certificates

Updated: Dec 6, 2025

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.

Eligible for: First-time and repeat homebuyers in Minnesota who meet Minnesota Housing income limits (in some areas up to about $185,700 household income)…

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.Deadline: Rolling; programs are offered statewide while funding and loan purchase capacity remain available.RollingStatewidehomebuyerfirst-time homebuyerrepeat homebuyerdown payment assistanceclosing cost assistanceaffordable mortgagetax credit

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