Down Payment Assistance Programs in Minnesota (2026 Guide)

# Down Payment Assistance Programs in Minnesota (2026 Guide) Saving for a down payment is one of the biggest hurdles for first-time home buyers. Fortunately, Minnesota offers 3 assistance programs that can help you achieve homeownership sooner than you thought possible. ## Minnesota Housing Agency All state DPA programs are administered by Minnesota Housing Finance Agency (Minnesota Housing). **Contact Information:** - Website: [https://www.mnhousing.gov](https://www.mnhousing.gov) - Phone: 651-296-7608 ## Available Programs Minnesota offers 3 major down payment assistance programs: ### Start Up Program | Feature | Details | |---------|---------| | Maximum Assistance | Up to 5% of loan amount | | Program Type | Second Mortgage | | Description | Interest-free second mortgage for first-time buyers. | ### Step Up Program | Feature | Details | |---------|---------| | Maximum Assistance | Up to $18,000 | | Program Type | Second Mortgage | | Description | For repeat buyers. Competitive rates with DPA. | ### Deferred Payment Loan | Feature | Details | |---------|---------| | Maximum Assistance | Up to $11,500 | | Program Type | Forgivable Loan | | Description | 0% interest, forgiven after 10 years. | ## How to Apply ### Step 1: Check Your Eligibility Most programs require: - First-time homebuyer status (no home ownership in past 3 years) - Income at or below program limits - Minimum credit score (usually 620-640) - Home price within program limits ### Step 2: Complete Homebuyer Education All Minnesota Housing programs require completion of a HUD-approved homebuyer education course. This prepares you for the responsibilities of homeownership. ### Step 3: Work with an Approved Lender Minnesota Housing maintains a list of approved lenders trained in their programs. These lenders can help you combine DPA with your mortgage. ### Step 4: Find Your Home Once pre-approved, work with a real estate agent to find a home within program price limits. ## Combining with Your Mortgage Down payment assistance can be layered with various loan types: | Loan Type | Min Down | With Minnesota Housing DPA | |-----------|----------|--------------------------| | FHA | 3.5% | DPA covers most or all | | Conventional | 3-5% | DPA covers most or all | | VA | 0% | DPA for closing costs | | USDA | 0% | DPA for closing costs | ## Real Cost Savings With Minnesota's median home price of $305,500: | Scenario | Down Payment Needed | With Max DPA | |----------|--------------------|--------------| | FHA (3.5%) | $10,693 | Potentially $0 | | Conventional (5%) | $15,275 | Significantly reduced | | Conventional (20%) | $61,100 | Reduced by DPA amount | ## Conclusion Don't let down payment concerns keep you from homeownership. Minnesota's DPA programs have helped thousands of first-time buyers achieve their dream. Contact Minnesota Housing today to learn which programs you qualify for. Use our [Minnesota Mortgage Calculator](/mortgage-calculator/minnesota) to see how DPA affects your monthly payment. --- *Source: Minnesota Housing Finance Agency. Program details subject to change. Contact Minnesota Housing for current requirements.*