Down payment assistance in Minnesota
Minnesota's primary statewide down payment assistance program, run by Minnesota Housing. Numbers and eligibility reflect the program's published 2025 guidelines.
Start Up + Monthly Payment Loan
Deferred loan- Maximum assistance
- Up to $18,000 as a 0% deferred second (Deferred Payment Loan)
- Income limit
- Up to $137,800 (varies by county)
- Home price limit
- Up to $546,000 in 11-county Twin Cities; $443,000 elsewhere
- First-time buyer
- Required
- Eligible loan types
- FHA, VA, USDA, Conventional
- •Two flavors: Monthly Payment Loan (10-yr amortizing) or Deferred Payment Loan (0% deferred).
- •Start Up is for first-time buyers; Step Up is for repeat buyers.
How Minnesota DPA fits into your purchase
Down payment assistance reduces the cash you need at the closing table. Minnesota's Start Up + Monthly Payment Loan pairs with the standard FHA, VA, USDA, or conventional first mortgage from a participating lender; the DPA flows through the same closing.
Two things to budget for: most state DPA requires a homebuyer-education course (typically online, 6-8 hours, ~$75) and you usually have to use a lender on the agency's approved list. The agency keeps the list public on its website.
Common questions
Minnesota's primary statewide DPA is Start Up + Monthly Payment Loan from Minnesota Housing. Up to $18,000 as a 0% deferred second (Deferred Payment Loan). Many Minnesota cities and counties also run additional DPA layered on top.
Yes. The Start Up + Monthly Payment Loan requires that you have not owned a primary residence in the past 3 years. Veterans and target-area buyers are sometimes exempt.
Yes. Start Up + Monthly Payment Loan works with these loan types: FHA, VA, USDA, Conventional. The DPA is layered behind your first mortgage as a separate lien (or grant), and both close together.
Usually no. Deferred and forgivable loans typically have no monthly payment, so most lenders do not include them in your DTI calculation.
Deferred and second-mortgage DPAs are generally repaid in full when you sell, refinance, or pay off the first mortgage.