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Minnesota

Minnesota Down Payment Assistance (DPA) Programs

Located in the upper midwestern United States, Minnesota is the 32nd state in the Union. It is nicknamed The North Star State and has over ten thousand lakes.  Known as the Twin Cities, the state’s capital is St. Paul and the largest city is Minneapolis. With a population of more than 5 million people, Minnesota boasts a homeownership rate of 75.1% (2022-U.S. Census Bureau).

DPA programs across the country continue to make homeownership possible for many. Below is a list of programs available in the state of Minnesota. Also, combining programs may be possible, so be sure to inquire.

Minnesota Housing Finance Agency

 Start Up Program

“The Start Up program is for first-time homebuyers, defined as those who “have not had an ownership interest in a principal residence in the last three years.” Downpayment and Closing Cost Loan options – up to $18,000 available!”

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Step Up Program

“If you’re not a first-time homebuyer – or you’re a first-time homebuyer who exceeds the income and purchase limits for Start Up – the Step Up program might be a great option for you. Downpayment and Closing Cost Loan options – up to $18,000 available!”

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Downpayment and Closing Cost Loans

  • “Monthly Payment Loan – up to $18,000. 10-year repayment term equal to your first mortgage rate.
  • Deferred Payment Loan – Up to $16,500. No interest, no monthly payments. Balloon payment due in full at the end of the mortgage term r when the borrower moves, sells, or refinances the first mortgage.
  • Deferred Payment Loan Plus – Up to $18,000. No interest, no monthly payments. Balloon payment due in full at the end of the mortgage term or when the borrower moves, sells, or refinances the first mortgage.”
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Dakota County CDA

First Time Homebuyer Program

The CDA’s First Time Homebuyer Program may be just what you’ve been waiting for. Homebuyers purchasing their first home in Dakota County can access fixed, low-interest mortgage financing along with a Mortgage Credit Certificate and up to $8,500 in downpayment and closing cost assistance through our First Time Homebuyer Program.

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Homes Within Reach

West Hennepin Affordable Housing Land Trust

Community Land Trust (CLT) Homes

“A CLT typically purchases an existing owner-occupied home currently for sale and then sells just the home, and not the land, to a low-to-moderate-income household. The CLT retains ownership of the land and enters into a 99-year Ground Lease with the leaseholder-homeowner at a nominal fee.

Removing the land value from the mortgage equation reduces the mortgage, down payment and closing costs.”

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Duluth Housing and Redevelopment Authority

Home Ownership Opportunities

“Duluth, Minnesota (HRA), has received funds to purchase and rehabilitate foreclosed homes and sell them to qualified low- income individuals/families. These homes are located in designated priority neighborhoods in order to preserve the homes in those neighborhoods. The Program is also intended to give low-income individuals and families the opportunity to purchase a home, which they may not be able to do through traditional mortgage financing.

There will be no down payment or closing costs to the homebuyers, and the homes will be sold on a Contract for Deed through the HRA.”

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Minneapolis Housing & Development Assistance

Building Equity Down Payment Assistance Program

“This program is administered by the Family housing fund. It focuses on homebuyers up to 115% of area median income to purchase a 2–4-unit building (Duplex, Triplex, Fourplex, or Home with ADU not to exceed 4 total units) as an owner-occupant landlord. The property must be in the 7-county metro area (Hennepin, Ramsey, Anoka, Dakota, Scott, Carver, or Washington). The amount of assistance provided is a 0% interest, no payment, 5- year forgivable loan of up to $40,000 in aid.”

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Homeownership Opportunity Minneapolis (HOM) Down Payment Assistance

“Homeownership Opportunity Minneapolis is a down payment assistance program that provides a 0% interest, no payment 30-year loan with $10,000 in assistance for homebuyers between 61- 80% AMI and $20,000 in assistance for homebuyers below 60% AMI to purchase any home in the City of Minneapolis.”

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Homebuyer Initiated Program

“The City provides funding to support City of Lakes Community Land Trust’s Homebuyer Initiated Program, which provides up to $70,000 of assistance to buyers purchasing homes on the open market. Homes are enrolled in a shared equity program.”

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Minneapolis Homes: Financing Affordable Homes

“The City finances affordable homes available for purchase through an annual application process. Contact the developer for more details about how to purchase available homes and assistance available for purchase.”

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Saint Paul Department of Planning and Economic Development

Downpayment Assistance Program

“Qualified homebuyers earning at or below 80% area median income (AMI) can receive up to $40,000 to use towards a home downpayment, closing costs and/or property inspection for the purchase of a home in the City of Saint Paul. First-generation homebuyers are eligible to receive up to an additional $10,000.

In addition, homebuyers that are eligible for the Inheritance Fund layers may earn up to 100% AMI and can receive up to an additional $60,000 (for a total of $110,000).”

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Ramsey County Property & Home

Cities served: Arden Hills, Falcon Heights, Gem Lake, Lauderdale, Little Canada, Maplewood, Mounds View, New Brighton, North Oaks, Roseville, Saint Anthony, Shoreview, Vadnais Heights, White Bear Lake, White Bear Township

FirstHome Program

“Ramsey County’s FirstHome program assists first-time and first-generation homebuyers with low-to-moderate incomes who are purchasing homes in suburban Ramsey County.”

  • Eligible first-time homebuyers may receive up to $20,000 for down payment or closing costs.
  • Eligible first-generation homebuyers may receive up to $93,150 for down payment or closing costs.”
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NeighborWorks Home Partners

Near North/Willard-Hay Homebuyer Entry Cost Assistance

“NeighborWorks Home Partners has partnered with the Northside Residents Redevelopment Council (NRRC) to provide homeownership support to residents of the Near North and Willard-Hay neighborhoods. This partnership includes the Homebuyer “Entry Cost” Assistance Deferred Loan Program, which provides up to $10,000 in down payment assistance!”

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Metro Home Down Payment Assistance

“If you are buying a home in Anoka, Carver, Chisago, Dakota, Hennepin, Isanti, Ramsey, Scott, Sherburne, Washington or Wright county, you may qualify for over $10,000 in Metro Home down payment assistance!”

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Bloomington Homebuyer Mortgage Assistance (HMA)

“If you are a Bloomington homebuyer, you may qualify for a $10,500 down payment assistance loan!”

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Community Keys Plus Down Payment Assistance

“If you are buying a home in Hennepin, Ramsey, Washington, Dakota, or Anoka County, you may qualify for up to $20,000 in Community Keys Plus down payment assistance!”

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ThreeRivers Community Action

Down Payment Assistance

“Three Rivers Community Action’s Gap Financing program helps eligible buyers in Southeastern Minnesota with downpayment and closing cost assistance. Buyers can qualify for up to $18,500 based on individual household need. Funds are in the form of 0% interest, deferred payment loans (no payment for 30 years or until you sell your home).”

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Coon Rapids Housing Department

Down Payment Assistance Loan

“The City of Coon Rapids has funds available to help with costs associated with purchasing a new home. Loan amounts up to $5,000, 0% annual percentage rate (APR).”

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Minnesota Department of Agriculture Rural Finance Authority (RFA)

Down Payment Assistance

“The Minnesota Down Payment Assistance Grant offers up to $15,000 for qualified farmers purchasing their first farm. The grant program is administered by the Minnesota Department of Agriculture Rural Finance Authority (RFA) as part of its mission to develop the state’s agricultural resources.”

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Roseville Community Development

First-Generation Downpayment Assistance Program

“This program is designed to help first-generation home buyers make a downpayment, with loan funds to be repaid upon future sale of the home. To qualify, applicants must demonstrate their parents have never owned a home. Applicants can still qualify if their parents previously owned a home but it was lost to foreclosure. Up to $25,000 deferred 0% interest loan.”

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Federal Home Loan Bank (FHLBank) Des Moines

States/Territories served: Alaska, American Samoa, Hawaii, Guam, Idaho, Northern Mariana Islands, Iowa, Minnesota, Missouri, Montana, North Dakota, Oregon, South Dakota, Utah, Washington, Wyoming

Home$tart Program

“Through our Home$tart program, eligible households may receive up to $7,500 in down payment and closing cost assistance. You must apply through a member institution.”

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Native American Homeownership Initiative (NAHI)

“Through our Native American Homeownership Initiative (NAHI), eligible households may receive up to $15,000 for down payment and closing cost assistance. You must apply through a member institution.”

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USDA Rural Development

Single Family Housing Direct Home Loans

“Also known as the Section 502 Direct Loan Program, this program assists low- and very-low-income applicants obtain decent, safe and sanitary housing in eligible rural areas by providing payment assistance to increase an applicant’s repayment ability. Payment assistance is a type of subsidy that reduces the mortgage payment for a short time.”

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Habitat for Humanity 

Habitat Home

“We believe that everyone should have a safe, affordable place to call home. To carry out our vision, we partner with individuals and families from application through construction to when the keys are handed over.” 

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Next in our series, we will look at Mississippi’s down payment assistance programs.

In this article:

Minnesota Housing Finance Agency

Dakota County CDA

Homes Within Reach

Duluth Housing and Redevelopment Authority

Minneapolis Housing & Development Assistance

Saint Paul Department of Planning and Economic Development

Ramsey County Property & Home

NeighborWorks Home Partners

ThreeRivers Community Action

Coon Rapids Housing Department

Minnesota Department of Agriculture Rural Finance Authority

Roseville Community Development

Federal Home Loan Bank (FHLBank) Des Moines

USDA Rural Development

Habitat for Humanity

Helpful Links:

Overview of Down Payment Assistance (DPA) Programs

DPA Programs by State/Territory

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