Minnesota Down Payment Assistance
Minnesota Down Payment Assistance Programs
A guide to current down payment assistance options in Minnesota, including the state Housing Finance Agency, well-known city and county programs, and live DPA mortgage pricing for Minnesota homebuyers.
Minnesota Housing Finance Agency
Minnesota Housing Finance Agency (Minnesota Housing)
www.mnhousing.gov/home/homeownership/buy-home-refinance
Minnesota Housing administers the primary DPA programs for Minnesota. Program details below are current as of April 23, 2026 - confirm current terms directly with Minnesota Housing before applying.
Statewide DPA Programs in Minnesota
Start Up
Minnesota Housing
30-year fixed-rate first mortgage for first-time homebuyers. Pairs with Minnesota Housing down payment assistance loans.
Paired with: Conventional, FHA, VA, RD
- First-time homebuyer: Required
- Primary residence only
- Income: Household income limits apply by county and household size; see Minnesota Housing schedule.
- Homebuyer education required
First-time homebuyer means no ownership interest in a principal residence in the last 3 years. Purchase price limits also apply.
Source: www.mnhousing.gov
Step Up
Minnesota Housing
30-year fixed-rate first mortgage for repeat buyers or buyers above Start Up income limits. Can also be used to refinance.
Paired with: Conventional, FHA, VA, RD
- First-time homebuyer: Not required
- Primary residence only
- Income: Household income limits apply; see Minnesota Housing Step Up schedule.
- Homebuyer education required
Can be paired with the Monthly Payment Loan for closing cost assistance.
Source: www.mnhousing.gov
Monthly Payment Loan
Minnesota Housing
Amortizing second mortgage for down payment and closing cost assistance; interest rate matches the first mortgage.
- Primary residence only
- Homebuyer education required
Available with the Start Up or Step Up first mortgage programs. See the Downpayment and Closing Cost Loans comparison document for current maximum loan amount and term.
Source: www.mnhousing.gov
Deferred Payment Loan / Deferred Payment Loan Plus
Minnesota Housing
0% interest deferred second mortgage with no monthly payments; due at sale, refinance, transfer, or payoff of the first mortgage.
- First-time homebuyer: Required
- Primary residence only
- Homebuyer education required
Used only with the Start Up first mortgage for first-time homebuyers. See the Downpayment and Closing Cost Loans comparison document for current maximum loan amount.
Source: www.mnhousing.gov
Major City & County Programs in Minnesota
Minneapolis Homes: Access Down Payment Assistance
City of Minneapolis, Community Planning and Economic Development · Minneapolis, MN
Up to $20,000 deferred for 30 years; repayable at end of first mortgage term, refinance, or transfer of title. Funds may be used for down payment, principal reduction, or closing costs.
Household income limited to 80% AMI. Home must be primary residence for 10 years. Homebuyer education required.
Source: www.minneapolismn.gov
2026 Loan Limits in Minnesota
Conforming (Conventional)
$806,500 baseline
FHA
$524,225 floor
Most Minnesota counties use the FHA floor limit.
Live DPA Pricing for Minnesota
Pricing below is sourced live from hundreds of wholesale lenders for a Minnesota scenario. Edit the inputs to match your situation.
FHA Down Payment Assistance
Up to 5% assistance; repayable second at first rate + 2% over 10 years
▸Program details
- ✓Minimum credit score: 580
- ✓Non-traditional credit also possible
- ✓Assistance up to 2.5%, 3.5%, or 5% of the lesser of purchase price or appraised value
- ✓Assistance can be used for down payment, closing costs, or both
- ✓Second lien: 10-year fixed, repayable
- ✓Second lien rate is 2% higher than the first mortgage rate
- ✓No first-time homebuyer requirement
- ✓No income cap
- ✓Purchase of primary residence only
- ✓Eligible properties: 1-unit residences, PUD, 2-4 units, FHA-approved condos, manufactured (single/double-wide)
- ✓DTI per AUS and FHA manual underwriting guidelines
- ✓First lien: FHA 30-year fixed
Assistance amount
Compare DPA options for Minnesota with live pricing
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