First-time buyers · Minnesota
First-time home buyer programs in Minnesota
Minnesota Housing's Start Up program is the state's main first-time buyer loan: for buyers who haven't owned their home in the last three years, with household income up to $156,100 (depending on the county) and a price up to $515,200 in the 11-county Twin Cities metro. It can come with up to $18,000 for the down payment and closing costs, as a loan, not a grant.
From Minnesota Housing's own pages, checked November 8, 2026. Limits change, usually once a year.
Start Up: the state's first-time buyer loan
| Who | Buyers who haven't had an ownership interest in a principal residence in the last three years |
|---|---|
| Income limit | Up to $156,100, depending on the county |
| Price limit | $515,200 in the 11-county Twin Cities metro; $472,030 elsewhere in Minnesota |
| Down payment help | Up to $18,000 (see below) |
| Also required | A minimum credit score, living in the home, and homebuyer education |
Down payment and closing cost loans
These come with a Minnesota Housing first mortgage. They are loans, not grants, and you can use one of them.
| Loan | With | Up to | How it's repaid |
|---|---|---|---|
| Deferred Payment Loan Plus | Start Up | $18,000 | No interest or monthly payments; repaid when the mortgage ends, or when you sell, move or refinance |
| Deferred Payment Loan | Start Up | $14,000 | Same as above |
| Monthly Payment Loan | Start Up or Step Up | $14,000 | Monthly payments over 15 years, at your first mortgage's rate |
Already owned a home, or over the limits?
Step Up is Minnesota Housing's loan for repeat buyers and for first-time buyers over the Start Up limits: income up to $196,600 depending on the county, the same $515,200 metro price limit ($498,257 elsewhere), and a Monthly Payment Loan of up to $14,000.
Closed: the First-Generation Homebuyer Loan
You may still see Minnesota's First-Generation Homebuyer Loan advertised. Minnesota Housing says its one-time funds ran out and the program closed on December 19, 2024.
How to use these programs
- Know your number. Work out a monthly payment you're comfortable with, including taxes and insurance: affordability calculator.
- Talk to a participating lender. Minnesota Housing's loans are made through participating lenders; get pre-approved and ask which program fits.
- Take the homebuyer class. Required for Minnesota Housing loans when every borrower is a first-time buyer: Home Stretch, in person, live online or self-paced.
- Shop within the limits. We'll keep your search under the program's price limit and tell you up front about costs like property taxes and HOA dues.
Prefer to buy with as little debt as possible? We've been a Ramsey Endorsed Local Provider for more than 15 years and work with plenty of buyers who skip second loans altogether.
Buying your first home
Not sure which program fits you?
Tell us where you want to buy and roughly what you'd like to spend. We'll connect you with a lender who does Minnesota Housing loans and show you homes that fit the limits.
Call or text (612) 502-7653.
Quick answers
First-time buyer questions
Who counts as a first-time home buyer in Minnesota?
For Minnesota Housing's Start Up program, someone who has not had an ownership interest in a principal residence in the last three years. So if you owned a home before but not in the last three years, you can still qualify.
What are the income and price limits for Start Up?
Household income up to $156,100, depending on the county, and a purchase price up to $515,200 in the 11-county Twin Cities metro area or $472,030 in the rest of Minnesota (Minnesota Housing, as of November 8, 2026).
How much down payment help can I get in Minnesota?
With a Start Up first mortgage: a Deferred Payment Loan of up to $14,000 or a Deferred Payment Loan Plus of up to $18,000, with no interest and no monthly payments, repaid when the mortgage ends or when you sell, move or refinance; or a Monthly Payment Loan of up to $14,000, repaid over 15 years at your mortgage's rate. You can use one of them, not several.
Are there first-time home buyer grants in Minnesota?
Minnesota Housing's down payment and closing cost help comes as loans, not grants. Its one-time First-Generation Homebuyer Loan Program, which could be partly forgiven, ran out of money and closed on December 19, 2024. Some cities, counties and nonprofits run their own programs; a participating lender can tell you what applies where you're buying.
Do I have to take a homebuyer class?
Yes, if you get a Minnesota Housing loan and all borrowers are first-time buyers: at least one of you must complete an approved homebuyer education course before closing. The Minnesota Homeownership Center's Home Stretch course is offered as a workshop or online, and it helps most when you take it early.
How do I apply?
Through a lender that takes part in Minnesota Housing's programs, the same way you'd apply for any mortgage; Minnesota Housing doesn't make the loans itself. Get pre-approved before you start touring so you know your budget.
What if I've owned a home before, or I'm over the Start Up limits?
Minnesota Housing's Step Up program is for repeat buyers and for first-time buyers over the Start Up limits: income up to $196,600, depending on the county, and the same $515,200 price limit in the metro ($498,257 elsewhere). It can be paired with a Monthly Payment Loan of up to $14,000.
Sources
- Minnesota Housing: Buy a Home & Refinance (Start Up, Step Up, down payment and closing cost loans)
- Minnesota Housing: First-Generation Homebuyer Loan Program (closed)
- Minnesota Homeownership Center: Homebuyer Education (Home Stretch)
Checked November 8, 2026. Minnesota Housing doesn't make or arrange loans; lenders set rates, fees and approval. This page is general information, not a loan offer.