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 October 17, 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: 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.
Can be paired with the Monthly Payment Loan for downpayment and closing cost assistance. Homebuyer education is required only when all borrowers are first-time homebuyers.
Source: www.mnhousing.gov
Monthly Payment Loan
Minnesota Housing
Up to $14,000 as a 15-year fully amortizing second mortgage for downpayment, closing costs, and mortgage insurance costs; interest rate equals the first mortgage rate.
Paired with: Conventional, FHA, VA, RD
- Primary residence only
- Income: Start Up or Step Up income limits apply, matching the first mortgage.
Available with the Start Up or Step Up first mortgage programs; not limited to first-time buyers when used with Step Up. Minimum borrower contribution is the lesser of $1,000 or 1% of the purchase price. Homebuyer education required with Start Up, and with Step Up when all borrowers are first-time homebuyers.
Source: www.mnhousing.gov
Deferred Payment Loan / Deferred Payment Loan Plus
Minnesota Housing
Up to $14,000 (DPL) or up to $18,000 (DPL Plus) as a 0% interest deferred second mortgage with no monthly payments; due at sale, transfer, refinance (unless with Step Up), payoff of the first mortgage, or when the home is no longer the primary residence.
Paired with: Conventional, FHA, VA, RD
- First-time homebuyer: Required
- Primary residence only
- Income: DPL and DPL Plus income limits apply (lower than Start Up limits).
- Homebuyer education required
Used only with the Start Up first mortgage for first-time homebuyers. Post-closing liquid assets limited to $13,000 (retirement accounts excluded). Minimum 25% housing ratio. DPL Plus has added targeting criteria. Minimum borrower contribution is the lesser of $1,000 or 1% of the purchase price.
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
0% interest 30-year deferred loan: $10,000 for households at or below 80% of AMI, or $20,000 for households below 60% of AMI. Funds may be used for down payment and standard closing costs.
First-time homebuyers; household income at or below 80% AMI. Home must be primary residence for 10 years. Homebuyer education required. Cannot be combined with other City programs. Apply through a City partner organization; awards depend on available funds.
Source: www.minneapolismn.gov
2026 Loan Limits in Minnesota
Conforming (Conventional)
$832,750 baseline
FHA
$541,287
Standard FHA limit, applies to most Minnesota counties.
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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