Minnesota Housing anchors its help with the Start Up loan for first-time buyers, then lets you add one of three down payment options — a repayable second worth up to $18,000, or a no-interest deferred loan you settle later.
This guide covers what is actually available to first-time buyers in Minnesota in 2026 — the agency behind these programs, the loans and down payment help on offer, who qualifies, and how to apply. For the wider local picture, see our Minnesota first-time home buyer guide.
The Minnesota Housing and its home loan programs
Minnesota’s first-time buyer programs are run by the Minnesota Housing (Minnesota Housing Finance Agency). Like most housing finance agencies, it does not lend directly — instead it offers below-market first mortgages, bundled with down payment help, through a network of approved local lenders. Its main first-mortgage options are:
- Start Up — the first-time buyer mortgage that carries the down payment help
- Step Up — for repeat buyers and refinancing
Most of these can be built on top of an FHA, VA, or USDA loan, or a conventional loan, depending on the product you pick — and the real value comes when you pair one with the down payment assistance below.
Down payment assistance in Minnesota
Down payment assistance is the heart of what Minnesota Housing offers, and Minnesota gives buyers more than one way to get it. Assistance comes in three forms, so you can pick a larger repayable loan or a smaller deferred one.
- Monthly Payment Loan — repayable second (10-year term), up to $18,000.
- Deferred Payment Loan — deferred second at 0% interest, up to $16,500, due on sale/refinance/payoff.
- Deferred Payment Loan Plus — deferred second at 0% interest, up to $18,000, with stricter eligibility.
If those terms are unfamiliar, our national guide to down payment assistance explains exactly how grants, forgivable second mortgages, and deferred loans differ — and what each one means when you eventually sell or refinance.
How much help could you get?
On a $300,000 home in Minnesota, the Monthly Payment Loan could provide up to $18,000 as a repayable second over ten years, while the Deferred Payment Loan offers up to $16,500 at zero interest with nothing due until you sell or refinance. First-time buyers use these with a Start Up mortgage. Confirm the current caps and county income limits with Minnesota Housing.
Who qualifies in Minnesota?
Every program sets its own rules, and they change periodically, but the common requirements in Minnesota look like this:
- Income limits. Minnesota Housing sets a household income limit by county (a statewide figure historically around $134,800 — verify the current number).
- First-time status. Start Up requires first-time status; Step Up serves repeat buyers.
- Credit score. A minimum of 620 applies. Our guide to credit score requirements covers what moves the needle.
- Homebuyer education. A homebuyer education course is required.
- Purchase price limits. Acquisition/purchase-price limits apply.
Minnesota programs worth knowing about
Beyond the standard offerings, Minnesota aims extra help at specific buyers and places. Watch for:
- Deferred Payment Loan Plus — a larger no-interest deferred option for buyers who meet stricter criteria
- HFA conventional — with reduced mortgage insurance
Mortgage Credit Certificates in Minnesota
Minnesota Housing does not currently offer a Mortgage Credit Certificate — verify the current status with the agency if a tax credit matters to you. A Mortgage Credit Certificate is a federal tax credit worth a percentage of the mortgage interest you pay every year for the life of the loan, and where it is available it can usually be combined with the assistance above — putting money back in your pocket each tax season.
How to apply for Minnesota assistance
- Set your budget first. Our home affordability guide helps you land on a realistic price range before you start shopping.
- Complete a homebuyer education course. Nearly every Minnesota program requires one, and it is usually free and available online.
- Find a participating lender. Not every lender originates Minnesota Housing loans, so ask directly which Minnesota Housing programs a lender offers and have them run your numbers against a few.
- Get pre-approved and lock in the right program for your income, credit, and target home before you make an offer.
One important note: Minnesota Housing program funding and terms change from year to year, and some assistance rounds close when the money runs out. Always confirm current amounts and availability directly with Minnesota Housing before you count on a specific figure. Our first-time home buyer checklist keeps the rest of your process on track.
Minnesota first-time buyer programs FAQ
Do I have to be a first-time buyer to get assistance in Minnesota?
Start Up requires first-time status; Step Up serves repeat buyers.
What credit score do I need for Minnesota Housing programs?
A minimum of 620 applies. Keep in mind a program’s own minimum can sit above the loan’s floor, so confirm the exact number with your lender.
Can I use Minnesota assistance with an FHA, VA, or USDA loan?
Yes. Minnesota Housing assistance is built to layer on top of a first mortgage, and FHA, VA, and USDA loans are common partners because their own down payment requirements are already low. Your lender structures both pieces so they close together.
Which Minnesota down payment loan should I choose?
It depends on your budget. The Monthly Payment Loan gives the most (up to $18,000) but adds a payment over ten years. The Deferred Payment Loan (up to $16,500) and Deferred Payment Loan Plus (up to $18,000) charge no interest and require no payment until you sell or refinance, but the Plus version has stricter eligibility. All pair with a Start Up mortgage; a Minnesota Housing lender can confirm which you qualify for.
More Minnesota city guides
Buying in a specific Minnesota metro? See our first-time buyer guides for Minneapolis, each covering the city’s own local down payment programs.
First-time home buyer grants in Minnesota
Looking specifically for grant money? Our guide to first-time home buyer grants in Minnesota covers which programs are true grants, which are forgivable, and the truth about the widely advertised federal grant.