If you are searching for a first-time home buyer grant in Minnesota, the honest picture is that the state’s help comes as deferred or repayable loans rather than grants — but the deferred options carry no monthly payment and can reach $18,000.
This guide covers what actually counts as grant money for first-time buyers in Minnesota in 2026 — the help that does not have to be repaid, the truth about the federal grant everyone asks about, and how to find and qualify for it.
Are there really first-time home buyer grants in Minnesota?
Here is the honest answer most sites skip: a true grant is money you never repay, but the majority of what gets marketed as a “first-time home buyer grant” is actually a forgivable loan — a second mortgage that is written off over time as long as you stay in the home. The practical difference is small if you plan to stay put, but it matters if you might sell or refinance early. Minnesota Housing delivers its down payment help as loans — some repayable, some deferred at 0% — rather than outright grants.
For the full difference between grants, forgivable seconds, and deferred loans, our national guide to down payment assistance breaks it down.
Minnesota grant and forgivable-money programs
Here is what Minnesota actually offers, described honestly:
- Deferred Payment Loan / Deferred Payment Loan Plus — deferred seconds of up to $16,500 or $18,000 at 0% interest, with no payment until you sell or refinance — not grants, but no monthly cost
- Monthly Payment Loan — a repayable second of up to $18,000 over 10 years for buyers who prefer a larger amount
This page focuses on the no-repay and forgivable money. For the full menu — including deferred loans, below-market mortgages, and the Mortgage Credit Certificate — see our complete guide to Minnesota first-time home buyer programs.
The $25,000 first-time buyer grant — is it real?
You have probably seen ads for a “$25,000 first-time home buyer grant” or a “$15,000 first-time buyer tax credit.” Here is the truth as of 2026: both come from proposed federal bills (the Downpayment Toward Equity Act and the First-Time Homebuyer Tax Credit Act) that have not become law. No one can give you that $25,000 federal grant today, in Minnesota or anywhere else, because it does not exist yet — so be cautious with any site or “lender” that promises it. We track the real status on our explainer of the $25,000 first-time home buyer grant. The good news: the Minnesota programs above are real, available now, and often just as valuable.
How to qualify for a grant in Minnesota
Grant and forgivable programs in Minnesota share a familiar set of rules:
- Income limits. Minnesota Housing sets a household income limit by county (a statewide figure historically around $134,800 — verify current).
- First-time status. The Start Up program requires first-time status; Step Up serves repeat buyers.
- Homebuyer education. Nearly every grant program requires a short course, usually free and often online.
- A participating lender. Grants are delivered through approved lenders, not the agency directly, so ask which programs a lender offers — and check our guide to credit score requirements to be sure you qualify for the underlying loan.
- Primary residence. The home must be the one you live in, not an investment property.
How to find down payment grants in Minnesota
Minneapolis and St. Paul offer their own deferred down payment help on top of the state programs, so city buyers should ask about both — see our Minneapolis guide.
Several Minnesota cities also run their own grant and forgivable programs on top of the state help — see our city guides for Minneapolis.
And before you count on any figure, remember that grant funding runs in cycles and can be exhausted, so always confirm current availability with the program. Our first-time home buyer checklist keeps the rest of your purchase on track.
Minnesota first-time buyer grants FAQ
Do first-time home buyer grants in Minnesota have to be repaid?
Yes — Minnesota’s down payment help is a second mortgage, either repayable (the Monthly Payment Loan) or deferred at 0% (the Deferred Payment Loans). Even the deferred versions are eventually repaid when you sell or refinance, so they are not grants. They do, however, carry no monthly payment while you own, keeping your housing cost low.
Is there a $25,000 grant for first-time buyers in Minnesota?
Not currently. The $25,000 figure comes from a proposed federal bill (the Downpayment Toward Equity Act) that has not become law, so it is not available in Minnesota or any state today. What is available are Minnesota’s real grant and forgivable programs described above, plus the statewide options in our Minnesota programs guide.
Who qualifies for down payment grants in Minnesota?
The Start Up program requires first-time status; Step Up serves repeat buyers. Minnesota Housing sets a household income limit by county (a statewide figure historically around $134,800 — verify current). You will also complete a homebuyer education course and use a participating lender.
Which Minnesota down payment option is closest to a grant?
The Deferred Payment Loan and Deferred Payment Loan Plus (up to $16,500 or $18,000 at 0% interest) come closest — they charge no interest and require no payment until you sell, refinance, or pay off the mortgage. They are still eventually repaid, so they are not true grants, but they behave like grants month to month. The Monthly Payment Loan gives the same amount but with a monthly payment. A Minnesota Housing lender can help you choose.