Minnesota First-Time Home Buyer Programs and Assistance
Minnesota Housing (Minnesota Housing Finance Agency) currently lists 4 programs for Minnesota buyers, with down payment help up to $18,000 through Deferred Payment Loan (DPL) / Deferred Payment Loan Plus (DPL+). Figures below were read from the agency's own pages on September 11, 2026.
Minnesota first-time buyer programs open now
Minnesota Housing (Minnesota Housing Finance Agency) is the state's housing finance agency (homebuyer programs page). It runs 2 down payment or closing-cost assistance programs alongside 2 below-market first mortgages. Has not had an ownership interest in a principal residence in the last 3 years (federal definition); required for Start Up (and for at least one borrower's homebuyer-education requirement), not required for Step Up
| Program | Type | Amount | First-time only | Min. credit | Income limit |
|---|---|---|---|---|---|
| Start Up source | First mortgage | See program page | Yes | n/a | Up to $156,100, based on county |
| Step Up source | First mortgage | See program page | No | n/a | Up to $196,600, based on county |
| Monthly Payment Loan source | Second mortgage | Up to $14,000 | No | n/a | Same as the paired Minnesota Housing first mortgage program (Start Up or Step Up) |
| Deferred Payment Loan (DPL) / Deferred Payment Loan Plus (DPL+) source | Deferred second loan | DPL: up to $14,000; DPL+: up to $18,000 | Yes | n/a | Contact a participating lender (not published on this page) |
- Start Up. Purchase price limit: Up to $515,200 in the 11-county Metro area; up to $472,030 in all other counties Must pair with: A Minnesota Housing participating lender Homebuyer education: required Program page
- Step Up. Purchase price limit: Up to $515,200 in the 11-county Metro area; up to $498,257 in all other counties Must pair with: A Minnesota Housing participating lender Homebuyer education: required Program page
- Monthly Payment Loan. Terms: 15-year repayment term at an interest rate equal to the first mortgage rate (borrower makes monthly payments) Must pair with: Minnesota Housing Start Up or Step Up first mortgage Program page
- Deferred Payment Loan (DPL) / Deferred Payment Loan Plus (DPL+). Terms: No interest, no monthly payments; balloon payment due in full at the end of the mortgage term, or if the borrower moves, the property is sold or refinanced (except when refinancing via Step Up), or the first mortgage is paid off early Must pair with: Minnesota Housing Start Up first mortgage only Program page
How little you can put down
You do not need 20% down. Conventional loans go as low as 3% (through programs like Fannie Mae HomeReady and Freddie Mac Home Possible), FHA loans start at 3.5%, and VA and USDA loans can require nothing down. On Minnesota's median-priced home (about $354,500), 3% down is roughly $10,635. Putting 20% down lets you skip private mortgage insurance, but most first-time buyers put down far less.
Who counts as a first-time buyer
For most programs, a first-time buyer is anyone who has not owned a primary residence in the last three years, so many repeat buyers qualify again. Minnesota programs often add income and purchase-price limits, which is another reason to confirm the details with Minnesota Housing.
Stack a buyer rebate on top in Minnesota
Down-payment assistance and a buyer commission rebate are two different things, and in Minnesota you can use both. Assistance from Minnesota Housing helps with your down payment and closing costs; a buyer rebate returns about 2% of the price to you at closing (roughly $7,090 on a median-priced home), which can cover much of your closing bill.
You may qualify for more help in your county
City and county governments in Minnesota run their own down payment programs on top of the state ones, and most can be combined with a state loan. Each county page lists the local programs, income limits and local closing costs alongside the state programs:
- Hennepin County: local help up to $20,000
Frequently asked questions
What first-time home buyer programs are available in Minnesota?
Minnesota Housing (Minnesota Housing Finance Agency) lists 4 programs: Start Up, Step Up, Monthly Payment Loan, Deferred Payment Loan (DPL) / Deferred Payment Loan Plus (DPL+). Down payment help runs up to $18,000.
How much down payment assistance can you get in Minnesota?
Up to $18,000 through Deferred Payment Loan (DPL) / Deferred Payment Loan Plus (DPL+) (deferred second loan). Other Minnesota programs offer different amounts; see the table on this page for each one.
Do you have to be a first-time buyer to qualify in Minnesota?
Not for every program. 2 of 4 Minnesota programs are open to repeat buyers. Has not had an ownership interest in a principal residence in the last 3 years (federal definition); required for Start Up (and for at least one borrower's homebuyer-education requirement), not required for Step Up
How much down payment do you need in Minnesota?
As little as 3% on a conventional loan, 3.5% on an FHA loan, and 0% on VA or USDA loans. On Minnesota's median-priced home (about $354,500), 3% is roughly $10,635. You do not need 20% down, though 20% lets you avoid mortgage insurance.
Who counts as a first-time home buyer?
For most programs, a first-time buyer is anyone who has not owned a primary residence in the last three years. Some Minnesota programs also have income and purchase-price limits, so check with Minnesota Housing.
Can I combine assistance with a buyer rebate in Minnesota?
Yes. A buyer commission rebate is separate from down-payment assistance and is legal in Minnesota. Assistance helps with your down payment and closing costs up front; a rebate returns about 2% of the price at closing, which you can put toward closing costs. You can use both.
Official sources
- Minnesota Housing (Minnesota Housing Finance Agency)
- Minnesota Housing home
- Minnesota Housing First-Generation Homebuyer Loan Program (CLOSED)
- Consumer Financial Protection Bureau: down payment options and how to prepare
Minnesota program details last verified against Minnesota Housing on September 11, 2026.
Read the full guide to the cash you need to buy →
This is general information, not financial advice. Program details, limits, and loan terms change; confirm the current rules with Minnesota Housing and your lender before you rely on them.
See first-time buyer programs in all states