First-time home buyer programs in Minnesota
Minnesota Housing's Start Up program pairs a first-time buyer mortgage with up to $17,000–$18,000 in down payment loans, in your choice of monthly-payment or fully deferred structures.
Brokers in our network can pair these programs with competing loan offers — free, no obligation.
Start Up + Deferred Payment Loans
The first-time buyer track with 0% deferred assistance.
- Deferred Payment Loan: up to $10,000 at 0% — no monthly payment
- Deferred Payment Loan Plus: up to $18,000 for buyers meeting targeting criteria
- Repaid only when you move, sell, refinance, or pay off the first mortgage
- Income and price limits vary; homebuyer education required
Monthly Payment Loan
Bigger assistance if you can carry a small second payment.
- Up to $17,000 toward down payment and closing costs
- Interest rate matches your first mortgage; 10-year term
- Works with Start Up (first-time) and Step Up (repeat buyer) mortgages
- Twin Cities note: Hennepin & Ramsey counties' 2026 FHA limit is $552,000
Program terms, income limits, and funding availability change throughout the year — confirm current details with Minnesota Housing or a licensed Minnesota broker before relying on them.
Pair assistance with an FHA loan in Minnesota
Most Minnesota first-time buyers combine down payment assistance with an FHA first mortgage. 2026 FHA one-unit limits run from $541,287 (the national floor) up to $552,000 in Minneapolis–St. Paul.
See all 2026 Minnesota FHA loan limits →Find a broker in your Minnesota market
Local brokers know which programs are funded right now and how to stack them:
Minnesota first-time buyer FAQ
How much down payment help does Minnesota offer?
Up to $17,000 through the Monthly Payment Loan, or fully deferred options of $10,000 (standard) to $18,000 (Plus, for buyers meeting targeting criteria) at 0% with no monthly payment.
What's the difference between Start Up and Step Up in Minnesota?
Start Up is the first-time buyer program (no primary-residence ownership in 3 years); Step Up serves repeat buyers and refinancers. Both can attach Minnesota Housing's down payment loans.
Do Minnesota's deferred loans charge interest?
No — the Deferred Payment Loan and DPL Plus are 0% interest with nothing due monthly. You repay the original amount only when you sell, move out, refinance, or finish paying the first mortgage.
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