MN Down Payment Assistance Programs
Minnesota offers a variety of down payment assistance (DPA) programs to help individuals and families achieve homeownership.
These programs are designed to reduce the financial barriers associated with purchasing a home, making homeownership more accessible to a broader range of residents.
Navigating the various down payment assistance programs can be complex, but with the right information and support, you can find the option that best fits your needs.
Start Up Program
Tailored for first-time homebuyers, the Start Up program provides down payment and closing cost loans up to $18,000. Income limits vary by county, with a maximum of $142,800. Loans are structured as deferred payment loans, meaning no payments are due until the end of the mortgage term, at which point the loan is repaid in full.
Step Up Program
Designed for repeat homebuyers, the Step Up program offers down payment and closing cost loans up to $18,000. Income limits reach up to $185,700, depending on the county. Similar to the Start Up program, loans are deferred and repaid at the end of the mortgage term.
First-Generation Homebuyers Community Down Payment Assitance Fund
This program provides up to 10% of a home's purchase price, capped at $32,000, to first-generation homebuyers. The loan is forgivable over five years, with 20% forgiven each year, provided the buyer occupies the home as their primary residence. Income limits are based on county and household size. Applicants must complete an approved homebuyer education course.
Many Minnesota cities and counties also offer additional down payment assistance programs. These programs often require completion of a homebuyer education course and may have specific eligibility criteria based on income, location, and household size.
General Eligibility Requirements
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First-Time Homebuyer: Generally defined as someone who has not owned a home in the past three years.
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Income Limits: Vary by program and county; typically based on area median income and household size.
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Homebuyer Education: At least one borrower must complete an approved homebuyer education course before closing.
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Primary Residence: The property must be intended as the buyer's primary residence.