Minnesota homebuyers can access up to $17,000 in down payment assistance through the Minnesota Housing Finance Agency (Minnesota Housing). On the state's $333,614 median home price, that covers roughly 25% of a standard 20% down payment. Minnesota has 2 state DPA programs total.
Primary Program: Start Up Down Payment Loan
maximum assistance
0% interest, no monthly payments. Repaid when you sell, refinance, or pay off the first mortgage.
- Administering Agency
- Minnesota Housing Finance Agency (Minnesota Housing)
- Purchase Price Cap
- $481,176
Additional Minnesota DPA Programs
Step Up Program
Deferred Loan$17,000
0% interest, no monthly payments. Repaid when you sell, refinance, or pay off the first mortgage.
Apply / Learn MoreHow Down Payment Assistance Works
Most state DPA programs are layered on top of a first mortgage — you apply through an approved lender who originates both the primary loan and the DPA second lien at the same closing. The DPA funds reduce the cash you need upfront.
Grants
Free money — no repayment ever. Typically the smallest amounts but highest value.
Forgivable Loans
Balance forgiven after a set period (usually 3–15 years) if you stay in the home. Selling early triggers repayment.
Deferred Loans
No monthly payments. Balance due when you sell, refinance, or pay off your mortgage.
Down Payment Calculator
Down Payment Planner
Minnesota median pre-loaded
Your Savings Plan
Timeline
11.2 yrs
saving $500/mo
No PMI at 20% down
20% or more avoids private mortgage insurance entirely.
Estimate only — does not include investment returns on savings.
Full Calculator →Frequently Asked Questions
What down payment assistance is available in Minnesota?
Minnesota's primary DPA program is the Start Up Down Payment Loan, administered by the Minnesota Housing Finance Agency (Minnesota Housing). It provides up to $17,000 as a deferred loan. 0% interest, no monthly payments. Repaid when you sell, refinance, or pay off the first mortgage. Additional programs include Step Up Program.
How much down payment do I need in Minnesota after using DPA?
On a $333,614 home (Minnesota median), a 20% down payment is $66,723. With the Start Up Down Payment Loan covering $17,000, your remaining gap would be $49,723. Many buyers combine DPA with a 3–5% conventional or FHA loan to reduce their cash needed further.
Do I have to repay Minnesota down payment assistance?
0% interest, no monthly payments. Repaid when you sell, refinance, or pay off the first mortgage.
Can I combine Minnesota DPA with other assistance programs?
Yes — Minnesota's DPA programs can generally be combined ("stacked") with local city and county assistance programs, employer homebuyer benefits, and federal programs. Check with an approved lender or HUD-approved counselor to identify all programs you qualify for.
What are the income limits for Minnesota down payment assistance?
The Start Up Down Payment Loan uses a dollar-based income limit rather than a percentage of AMI. Check the Minnesota Housing Finance Agency (Minnesota Housing) website for current limits in your area.
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