Down Payment Assistance Programs in MN

Down payment assistance programs are available for those who qualify up to $10,000, although most people get much less.

There are many assistance programs to choose from, and most of them operate basically the same way. They are available from neighborhood, city, state, and county programs.

We like the Start Up Program offered though the Minnesota Housing Finance Agency (MHFA). This is because unlike so many other programs, it is offered anywhere in the State of Minnesota, and the program never runs out of money. From Minneapolis, St Paul, Duluth, and Rochester, to St Cloud, Marshall, Morehead, and Ely, the entire state of Minnesota qualifies.


What benefits do first-time homebuyer down payment assistance offer?

  • Mortgage loans to qualified low and moderate income first-time and move up homebuyers in Minnesota.

   - 30-year loans with affordable, low, fixed interest rates for the life of the loan

  - Interest-free loans to help with down payment and closing costs for eligible borrowers

   - Mortgage Credit Certificates - Save up to $2,000 a year in taxes

    -Below-market interest rates

    - No extra fees or discount points

You may be eligible for MN down payment assistance program if you:

  - Are a first-time homebuyer, meaning you have not owned a home in the past three years for Start Up program

   - Move up buyers who have owned a home in the past (Step Up program)

   - Have federal income tax return copies for the last three years

   - Be able to put $1000 down of your own money

   - Middle credit score of at least 640

   - Buy a qualifying home within prescribed purchase price limits

   - Have an income at or below the MN Housing income limits

   - Attend Home Buyer Education Classes (Called "Home Stretch") or an online class called "Frameworks"

Visit for in-person, or online class options.

To be eligible for a Start Up, MCC (with First Mortgage) or Step Up, you must qualify for an industry standard product such as FHA, FHA Streamlined 203k, RD, VA, Conventional HFA PreferredTM, or Conventional HFA Preferred Risk SharingTM loan. 

It's easy to get started. Simply apply for this down payment assistance loan in MN. There are no obligations to apply.  The application simply gives us the information we need to make a decision.