Minnesota’s housing market offers a wide mix of options, from vibrant Twin Cities neighborhoods to smaller towns and scenic rural communities. Whether you’re drawn to urban living or a quieter place, knowing what financial support is available can be just as important as finding the right home.
For many buyers, down payment assistance (DPA) can bring homeownership within reach. Across Minnesota, state agencies, local governments, and nonprofit organizations provide programs that include grants, forgivable loans, and deferred-payment loans to help cover upfront costs.
This guide highlights some of the most widely used and impactful DPA programs in Minnesota. While it’s not an exhaustive list, it focuses on programs with meaningful benefits for eligible buyers. We’ll continue updating as new opportunities become available.
What Is Area Median Income?
Before we dive into the different down payment assistance programs available in Minnesota, it's important to understand one term you'll see often: area median income (AMI).
Many DPA programs restrict eligibility to applicants who earn less than a set level of income. In some cases, this may be presented as a specific dollar amount. Other times, program guidelines will state that homebuyers must earn no more than a certain percentage of the AMI of the location where they're planning to purchase.
You can search for AMI by property address using Fannie Mae’s map tool.
Example: You purchasing a home in a community with an AMI of $125,000. The program you're applying for requires you earn no more than 115% AMI. In this scenario, you could make as much as $143,750 and still potentially qualify for down payment assistance.
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Statewide Down Payment Assistance Programs
Minnesota offers several strong statewide options for buyers, many through Minnesota Housing. Here are some of the most notable:
Start Up Program (Minnesota Housing)
The Start Up Program combines an affordable first mortgage with three optional down payment loans. The Monthly Payment Loan provides up to $14,000 at the same rate as the first mortgage and is repaid over 15 years. The Deferred Payment Loan offers up to $14,000 at 0% interest with no monthly payments, while the Deferred Payment Loan Plus offers up to $18,000 at 0% for buyers who meet additional targeting criteria.
Eligibility: Borrowers must be first-time homebuyers and meet county-based income limits. The maximum purchase price is $515,200 in the Twin Cities metro and $472,030 elsewhere. Deferred-loan borrowers must generally have a housing ratio of at least 25% and no more than $13,000 in post-closing liquid assets. Buyers must contribute the lesser of $1,000 or 1% of the purchase price.
Step Up Program (Minnesota Housing)
The Step Up Program serves both first-time and repeat buyers. Its optional Monthly Payment Loan provides up to $14,000 at the same rate as the first mortgage, with repayment over 15 years. The 0% deferred options available through Start Up are not offered with Step Up.
Eligibility: Household income may be as high as $196,600, depending on the county. The purchase price may not exceed $515,200 in the Twin Cities metro or $498,257 elsewhere. Borrowers must occupy the home as their primary residence and meet mortgage and program underwriting requirements, including applicable credit requirements.
First-Generation Homebuyers Community Down Payment Assistance Fund
The First-Generation Homebuyers Community Fund provides assistance equal to 10% of the purchase price, up to $32,000. The loan has no interest or monthly payments, and 20% of the original balance is forgiven each year until the debt is fully forgiven after five years.
Eligibility: All borrowers must be first-time homebuyers, and at least one must be a first-generation buyer and a Minnesota resident. Income may not exceed $124,200 for buyers currently living in the 11-county Twin Cities metro, $118,000 for buyers in Dodge or Olmsted County, or $111,700 for buyers elsewhere in Minnesota. Post-closing liquid assets are limited to $50,000, and approved homebuyer education must be completed before entering into a purchase agreement. The assistance cannot be used to satisfy FHA's required 3.5% minimum investment.
Welcome Home Program
The Welcome Home Program offers up to 30% of the purchase price, capped at $50,000, to buyers using an approved first-mortgage product. The assistance is a 0% loan with no monthly payments, and 10% of the original balance is forgiven each year over 10 years.
Eligibility: At least one borrower must be a first-time buyer and a Minnesota resident. Household income must be at or below 130% of Twin Cities metro AMI, and the buyer must contribute at least $1,000. Eligible homes can include one- to four-unit properties, manufactured homes purchased with land, cooperatives, and community land trust homes. The property must remain within the program’s applicable conforming-loan limit.
Down Payment Assistance Programs by County
Several counties in Minnesota operate their own assistance programs. These often complement statewide options.
Community Keys Plus Impact
Community Keys Plus Impact serves buyers in Hennepin, Ramsey, Dakota, Anoka, and Washington counties. It provides up to $25,000 based on the buyer's documented affordability gap through a 20-year, 0% deferred-forgivable loan.
Eligibility: Household income may not exceed $106,000, regardless of household size. Buyers do not have to be first-time homeowners, but they cannot own another residential property at closing. Post-closing liquid assets are capped at $50,000, the buyer must contribute the lesser of $1,000 or 1% of the purchase price, and the home may cost no more than $659,550.
Hennepin County Homebuyer Assistance Programs
Standard program: First-time buyers earning up to 60% of AMI may receive as much as $30,000 through a 0% deferred loan that is fully forgiven after 15 years of continued ownership and occupancy. Buyers earning from 61% to 80% of AMI may receive up to $20,000, with full forgiveness after 10 years. This track serves Hennepin County except Bloomington, Brooklyn Park, Eden Prairie, Maple Grove, Minneapolis, Plymouth, Richfield, and St. Louis Park.
First-generation track: Eligible first-generation buyers may receive up to $35,000 at or below 60% of AMI or up to $20,000 from 61% to 80% of AMI. These are 0% deferred loans with full forgiveness after 15 or 10 years, respectively. The track is available countywide and permits a purchase price up to $552,000.
Eligibility: The standard track requires first-time buyer status. The first-generation track requires at least one qualifying first-generation borrower who is also a Minnesota resident. Buyers must generally contribute at least $1,000 and complete both homebuyer education and one-on-one advising. The standard track generally requires a housing ratio between 20% and 35%. The first-generation track generally requires a housing ratio between 28% and 35% and total DTI no higher than 50%.
Metro Home Down Payment Assistance
Metro Home provides 10% of the purchase price, with assistance ranging from $10,000 to $40,000. The second mortgage carries a below-market fixed rate and is repaid monthly over a term of up to 15 years. The program serves an 11-county region surrounding the Twin Cities.
Eligibility: Income is generally limited to 80% of AMI, although buyers purchasing in a qualified census tract may qualify up to 120% of AMI. Post-closing assets may not exceed $50,000, total DTI is capped at 48%, and a minimum buyer contribution applies. First-time buyer status is not required, but borrowers cannot own another residential property at closing.
Project Reinvest
Project Reinvest provides a fixed $10,500 through a 0% deferred loan with no monthly payments. The loan is not forgivable and becomes due when the home is sold, title is transferred, the property is no longer owner-occupied, or the 30-year term ends. The term may extend to 33 years when paired with USDA financing.
Eligibility: The program serves the seven-county Twin Cities metro and permits household income up to 100% of AMI. Buyers do not need to be first-time homeowners, but they cannot own another residential property at closing. There is no program purchase-price cap.
Ramsey County FirstHOME
Standard assistance: FirstHOME provides up to $20,000 through a 0% deferred loan for eligible households earning no more than 80% of AMI. The balance is generally due when the property is sold.
First-generation assistance: Qualifying first-generation buyers may receive up to 25% of the purchase price, capped at $93,150. Five percent of the original balance is forgiven each year over 20 years. The income limit is 80% of AMI for households of one to three people and 100% of AMI for households of four or more.
Eligibility: The home must be in suburban Ramsey County outside Saint Paul and may cost no more than $372,600. Additional requirements depend on the assistance track and participating lender.
Carver County CDA Down Payment Assistance
Standard program: The Carver County CDA offers up to 25% of the purchase price, capped at $50,000, through a 0% loan. Five percent of the original balance is forgiven each year over a 20-year term.
First-generation program: Qualifying first-generation buyers may receive up to $50,000 at 0% interest. Ten percent of the original balance is forgiven annually, allowing full forgiveness after 10 years.
Eligibility: Household income may not exceed $131,500. Buyers must use a participating lender and complete Home Stretch education. The two Carver County products cannot be combined with each other, although outside assistance may be layered when program and lender rules permit.
Stearns County Housing Trust Fund Down Payment Assistance
The Stearns County Housing Trust Fund provides 10% of the purchase price, with assistance ranging from $15,000 to $30,000. The 0% deferred loan requires no monthly payments and is due when the home is sold or when the term ends, up to a maximum of 30 years.
Eligibility: Household income may not exceed 115% of Stearns County AMI. Buyers must contribute at least $1,000 and cannot own another residential property at closing, although first-time buyer status is not required. Eligible homes include single-family houses and townhomes priced at $300,000 or less.
Three Rivers Community Action Gap Program
The Gap Program provides up to $18,500 based on the buyer's demonstrated financing need. Assistance is structured as a 0% forgivable loan with a 10-year term and is available across 20 counties in southeastern Minnesota.
Eligibility: Applicants must be first-time homebuyers with income below 80% of statewide median income. Buyers must complete Home Stretch education and use qualifying fixed-rate first-mortgage financing.
Otter Tail County Down Payment Assistance
Otter Tail County provides up to 6% of the purchase price, capped at $15,000, through a 0% deferred loan. The balance becomes due upon sale, refinance, or the end of the first-mortgage term.
Eligibility: Income may not exceed $116,900 for households of one or two people or $134,435 for households of three or more. Buyers must contribute at least 2% of the purchase price, complete homebuyer education, and use qualifying fixed-rate mortgage financing. Existing homes and new construction may qualify when the property is permanently affixed to a foundation.
Down Payment Assistance Programs by City
Many Minnesota cities run targeted programs for local residents or buyers. These are often among the most generous.
Minneapolis Homes: Access Down Payment Assistance
Minneapolis Homes: Access offers up to $20,000 to households earning no more than 60% of AMI and up to $10,000 to households earning from 61% to 80% of AMI. The assistance is a 0% deferred loan with no monthly payments. It is fully repayable rather than forgivable and generally becomes due at the end of the first mortgage, upon refinance or ownership transfer, or after 30 years.
Eligibility: Borrowers must be first-time homebuyers under the city's definition, which generally means they have never owned a home, except for a limited foreclosure exception. Buyers must contribute at least $500, have a housing ratio of at least 15%, keep total DTI at or below 50%, and complete required education and advising. There is no program purchase-price cap.
Saint Paul Citywide Down Payment Assistance
Saint Paul's Citywide program offers up to $40,000 to households earning no more than 60% of AMI and up to $20,000 to those earning from 61% to 80% of AMI. Qualifying first-generation buyers may receive an additional $10,000. Assistance is a 0% deferred loan with one-fifteenth of the original balance forgiven each year over 15 years.
Eligibility: Household income may not exceed 80% of AMI, non-retirement assets are limited to $25,000, and all borrowers must complete approved homebuyer counseling. Eligible properties include single-family homes, duplexes, townhomes, and condominiums in Saint Paul.
Brooklyn Park Down Payment Assistance Loan
Brooklyn Park provides up to $7,500 for buyers moving into the city or up to $10,000 for current residents. The 0% deferred loan requires no monthly payments and is fully forgiven after 10 years if the borrower continues to own and occupy the home throughout the term.
Eligibility: Buyers must be first-time homebuyers, purchase a home priced at $515,200 or less, contribute the lesser of $1,000 or 1% of the purchase price, and complete Home Stretch or another approved education course.
Woodbury First-Time Homeownership Program
Woodbury provides assistance equal to as much as 3.5% of the purchase price. The standard loan carries a below-market simple interest rate with monthly interest-only payments, while qualifying first-generation buyers may receive a 0% loan. Principal is deferred until sale, a triggering refinance, another repayment event, or the end of the 30-year term.
Eligibility: Buyers must be first-time homeowners with household income below $158,000, contribute at least $1,000, and complete eight hours of homebuyer education. The home may cost no more than $451,500.
St. Louis Park Down Payment Assistance
Standard program: Eligible buyers may receive up to $15,000, not to exceed 5% of the purchase price. Qualifying St. Louis Park employees or buyers who have rented in the city for at least six months may receive another $5,000. The 0% deferred loan requires no monthly payments and is fully forgiven after 20 years of continued ownership and occupancy.
First-generation program: First-generation buyers may receive up to $75,000 at or below 50% of AMI, $60,000 from 51% to 60% of AMI, or $45,000 from 61% to 80% of AMI. The 0% loan forgives 5% of the original balance each year over 20 years. Non-retirement assets are capped at $15,000, and this assistance cannot be combined with the city's standard DPA loan.
Minnetonka Down Payment Assistance
Standard program: Minnetonka provides 10% of the purchase price, up to $50,000, through a 0% deferred loan. The full balance is forgiven after 30 years of continued ownership and occupancy. The home may cost no more than $498,900, liquid assets are capped at $25,000, retirement assets are capped at $200,000, and the buyer must contribute at least 1% of the purchase price.
Pathways to Homeownership: First-time buyers may receive up to $75,000 at or below 50% of AMI, $70,000 from 51% to 60% of AMI, $63,000 from 61% to 80% of AMI, or $50,000 from 81% to 120% of AMI. Five percent of the original balance is forgiven each year over 20 years. Buyers generally cannot have owned a home during the previous seven years, and the same $498,900 purchase-price limit applies.
Come Home 2 Edina
Come Home 2 Edina provides up to 25% of the purchase price, capped at $90,000. The loan term matches the first mortgage. Borrowers may choose monthly interest-only payments at the first-mortgage rate or defer all payments under a shared-appreciation option capped at the equivalent of 5% annual simple interest.
Eligibility: The home may cost no more than $515,200, the buyer must contribute at least $1,000, and the assistance is sized to the affordability gap. A separate $20,000 first-generation loan may also be available at 0% interest, with $1,000 forgiven each year over 20 years.
Edina Heroes Program
The Edina Heroes Program helps qualifying health care workers, educators, and City of Edina employees buy an eligible home in Edina. Assistance may equal up to 25% of the purchase price, capped at $100,000, and is sized according to the buyer's affordability gap. The term matches the first mortgage. Buyers may choose monthly interest-only payments at the lesser of the first-mortgage rate or 5%, or a deferred shared-appreciation option capped at the equivalent of 5% annual simple interest.
Eligibility: Household income is limited to $106,000 for one or two people or $137,080 for three or more. Non-retirement assets after closing may not exceed $50,000 for borrowers under age 50 or $100,000 for borrowers age 50 or older. Buyers must contribute at least $1,000, and the home may cost no more than $600,000. Qualifying first-generation buyers may receive an additional $20,000 forgivable loan.
Plymouth First-Time Homebuyer Program
Plymouth offers a 0% deferred loan of up to $35,000. Assistance may cover up to 50% of the required down payment, capped at $5,000; eligible closing costs, capped at $7,500; and mortgage principal reduction, capped at $30,000, subject to the overall program maximum. The loan becomes due if the home is sold, loses homestead status, or reaches the end of the 30-year term.
Eligibility: Applicants must be first-time homebuyers, earn no more than 80% of AMI, purchase in Plymouth, complete required homebuyer education, and obtain the first mortgage through a participating lender.
Eden Prairie First-Time/First-Generation Homebuyer Program
Eden Prairie offers from $3,000 to $35,000 through a 0% deferred loan. Assistance may cover up to half of the required down payment, up to $7,500 in eligible closing costs, and principal reduction of up to 15% of the purchase price. Repayment is due after 30 years or earlier if the home is sold, transferred, or no longer owner-occupied.
Eligibility: Buyers must meet federal CDBG income limits, contribute at least $1,000, and have no more than $25,000 in gross assets. The minimum housing ratio is 25%, the typical maximum housing ratio is 37%, and the property's price must be below 120% of the Twin Cities metro affordable-home price.
Burnsville Down Payment Assistance
Burnsville offers up to 10% of the purchase price, capped at $41,000. The loan accrues 0.25% simple interest, but both principal and interest are forgiven after 30 years if the borrower continues to own and occupy the home.
Eligibility: Household income may not exceed 80% of AMI, the buyer must contribute at least 1% of the purchase price, and the home may cost no more than $410,000.
Richfield First-Time Homebuyer Program
Richfield provides a base award of $15,000, with another $5,000 available to qualifying Richfield renters, households that include a person with a disability, or households with minor dependents. The 0% deferred loan has no monthly payments and is fully forgiven after 10 years of continued owner-occupancy.
Eligibility: Applicants must be first-time homebuyers with income at or below 80% of AMI, non-retirement assets below $25,000, and at least $1,000 of their own funds. When Richfield assistance is used, gifts and outside DPA are generally limited to a combined $10,000.
Additional Down Payment Assistance Programs in Minnesota
The following programs were not included in the sections above but may also provide valuable assistance.
Statewide Programs
County and Regional Programs
- Southwest Minnesota Housing Partnership Down Payment Assistance
- Northeast Minnesota HOME Consortium Homebuyer Assistance
- Washington County CDA First-Generation Homebuyer Grant
- Scott County CDA First-Time Homebuyers Program
City Programs
- Coon Rapids Down Payment Assistance Loan
- Shoreview First-Time Homeowners Down Payment Loan
- Northfield First-Time Homebuyer Program
- Saint Paul Inheritance Fund
- Blaine Down Payment Assistance Loan
- Fridley Down Payment Assistance Deferred Loan
Choosing the Right Type of Mortgage
While qualifying for down payment assistance can make homeownership more attainable, so can choosing the right type of loan. Not all mortgages are the same, and in some cases, you may even be eligible for a home loan with zero down payment required at all.
For most first-time homebuyers, the best options commonly include:
- Conventional Loans: Conventional loans are available to first-time homebuyers with just a 3% down payment, and are often a good choice for borrowers with a solid credit score and overall healthy financial profile.
- FHA Loans: Ideal for homebuyers with less-than-stellar credit or who may not otherwise qualify for a conventional mortgage, FHA loans – insured by the Federal Housing Administration – require a 3.5% down payment and come with mortgage insurance costs that are often more affordable for lower-credit borrowers.
- VA Loans: Eligible veterans and active duty service members may be able to qualify for a VA loan insured by the Department of Veterans Affairs. VA loans allow you purchase with a 0% down payment and commonly have some of the lowest interest rates on the market.
- USDA Loans: If you're purchasing a home in a designed rural community, you may qualify for a USDA loan backed by the United States Department of Agriculture. USDA loans have zero down payment requirement and come with fees that are lower than FHA-backed mortgages.
Final Thoughts on Minnesota DPA
Homebuyers in Minnesota can take advantage of a wide selection of down payment assistance options. From statewide programs backed by Minnesota Housing to locally supported initiatives, there are resources designed to ease the burden of upfront costs. As you plan your purchase, explore how these programs fit with your budget, check current mortgage rates , and use our loan calculators to see how different scenarios may work for you.
With the right tools and support, turning your goal of homeownership in Minnesota into reality could be more achievable than you think.
