Down payment assistance, grants, forgivable loans, and tax credits available to Minnesota buyers. Each program below is verified, with eligibility rules, benefit amounts, and a direct link to the official agency.
Last reviewed September 2026·4 programs·6 federal programs
Down payment and closing cost assistance at 0% interest with no payments, due at sale, refinance, or loan maturity (deferred, not forgiven). Limits effective July 2026.
Income limit
Income limits apply; DPL Plus has additional targeting criteria
Minimum credit score640
First-time buyer requiredYes
Special requirements: Must use with a Minnesota Housing Start Up first mortgage.
First-Generation Homebuyers Community Down Payment Assistance Fund
Administered by Midwest Minnesota Community Development Corporation (state-funded via Minnesota Housing grant)
Up to 10% of purchase price, capped at $32,000
0% interest down payment loan forgiven 20% per year over five years of owner occupancy; delivered through MMCDC and 10 CDFI/nonprofit/tribal DPA lenders statewide.
Income limit
Income-eligible households; minimum housing ratio of 20% and liquid assets under $50,000 after closing; purchase price capped in line with Minnesota Housing Start Up limits
First-time buyer requiredYes
Special requirements: Applicant and their parents/legal guardians must never have owned a home (or lost one to foreclosure); homebuyer education must be completed before signing a purchase agreement.
View official program page
Apply through the single online portal at FirstGenDPA.org, then work with a participating DPA lender.Verified September 2026
Start Up
Administered by Minnesota Housing Finance Agency
Below-market rate + up to $18,000 DPA
Low-rate first-time buyer mortgage with optional down payment assistance: Monthly Payment Loan or Deferred Payment Loan up to $14,000, or Deferred Payment Loan Plus up to $18,000 (limits effective July 2026).
Income limit
Income limits up to $156,100 depending on county; purchase price limits $515,200 (11-county metro) / $472,030 (other counties), effective 2026.
Minimum credit score640
First-time buyer requiredYes
Special requirements: Must be first-time buyer. Homebuyer education required.
Mortgage program for repeat buyers (purchase or refinance) with the Monthly Payment Loan up to $14,000 as its DPA option.
Income limit
Income limits up to $196,600 depending on county; purchase price limits $515,200 (11-county metro) / $498,257 (other counties), effective 2026.
Minimum credit score640
First-time buyer requiredNo
Special requirements: Available to repeat buyers selling current home.
3% minimum down payment with no minimum borrower contribution; income at or below 80% AMI (2026 AMIs effective June 13, 2026); reduced, cancellable mortgage insurance; $2,500 credit for very low-income first-time buyers on loans purchased through February 28, 2027.
Do I have to be a first-time homebuyer to qualify?
Most Minnesota programs require first-time buyer status, but the definition is broader than most people think — the IRS considers you a first-time buyer if you haven't owned a primary residence in the last three years. Each program above lists its specific rules.
What credit score do I need?
Minimum credit scores vary by program. Most Minnesota programs require 620 to 660, though some lower-tier products accept lower scores with manual underwriting. Check each program's eligibility section above.
How do I actually apply?
Most state programs aren't applied to directly — you go through a participating lender, who handles the program application as part of your mortgage. Each program above links to the official agency page with the current list of approved lenders.
Can I combine multiple programs?
Often yes — many states allow you to stack a state down-payment grant with a federal FHA or VA loan. Some programs explicitly forbid combining; check each program's "special requirements" above.
Do these programs cost anything?
The programs themselves are free to apply for. Some require completing a homebuyer education course (typically $50–$100, sometimes free). Forgivable second mortgages technically don't cost you unless you sell or refinance early — read the terms carefully.
