Minnesota Down Payment Assistance Programs
Don’t let the down payment stand between you and homeownership. Minnesota Housing offers up to $18,000 in down payment and closing cost assistance for qualifying Minnesota homebuyers.
Up to $18,000
Down Payment & Closing Costs
0% Interest
Deferred Loan Options Available
1st-Time & Repeat
Options for All Buyer Types
Local Team
Based in Little Canada, MN
How Minnesota Housing Assistance Works
Minnesota Housing (MHFA) partners with participating lenders to offer first mortgages paired with subordinate down payment and closing cost loans. These are not grants, but manageable or deferred loans designed to make home buying accessible.
Monthly Payment Loan
Up to $14,000 Available
A 15-year amortizing second mortgage that shares the same interest rate as your first mortgage. Available for both first-time and repeat buyers.
Deferred Payment Loan (DPL)
Up to $14,000 Available
0% interest with zero monthly payments. Repaid in full when you sell the home, refinance, move out, or pay off the first mortgage.
Deferred Payment Loan Plus (DPL+)
Up to $18,000 Available
Our highest assistance tier for lower-income first-time homebuyers. 0% interest and no monthly payment, repaid when the home is sold or refinanced.
Quick Eligibility Estimator
Select your parameters to see which Minnesota Housing assistance program fits you best.
Your Preliminary Program Match:
You meet preliminary limits for Start Up! You may qualify for up to $18,000 in DPL+ or $14,000 in standard DPL / Monthly Payment loans.
*Income and purchase limits are subject to change by Minnesota Housing. Household size and specific county guidelines apply. Contact our team to verify exact numbers for your target property.
Start Up vs. Step Up: Key Guidelines
Minnesota Housing structures its down payment assistance through two primary first-mortgage programs. Here is how they compare:
| Program Feature | Start Up Program (First-Time Buyers) | Step Up Program (Repeat Buyers & Higher Incomes) |
|---|---|---|
| Who Qualifies | First-time homebuyers (haven't owned a home in the past 3 years) | Repeat homebuyers OR first-time buyers whose income/purchase price exceeds Start Up limits |
| Maximum DPA Amount | Up to $18,000 (DPL+) or $14,000 (DPL / Monthly) | Up to $14,000 (Monthly Payment Loan) |
| 11-County Metro Income Limit | Up to $156,100 (based on household size) | Up to $196,600 (based on household size) |
| Purchase Price Limits | Up to $515,200 (Metro) / $472,030 (Greater MN) | Up to $515,200 (Metro) / $498,257 (Greater MN) |
| Occupancy | Owner-occupied primary residence | Owner-occupied primary residence |
| Homebuyer Education | At least one borrower must complete an approved course prior to closing | Required only if all borrowers are first-time homebuyers |
| Refinancing Eligible? | No (Purchase only) | Yes! Can refinance and subordinate existing MHFA second loans |
Four Steps to Get Down Payment Assistance
Because Minnesota Housing doesn't originate loans directly, you access these programs by working with an approved lending team like ours.
Contact Jay Dacey Team
Call or text 651-315-7681 or fill out our quick pre-approval form. We'll verify your income, credit, and eligibility for MN Housing.
Get Pre-Approved
We'll issue a competitive pre-approval letter showing your first mortgage amount paired with your specific down payment assistance funds.
Homebuyer Education
Take an approved online or in-person Minnesota homebuyer education course (Framework or similar). We'll guide you to the right one.
Close on Your Home!
Your assistance funds are wired directly to the closing table to cover your down payment and closing costs. You get the keys to your new home!
Minnesota Homebuyer Education Requirement
If all borrowers on the loan are first-time buyers, Minnesota Housing requires at least one borrower to complete an approved homebuyer education class prior to closing. Classes can easily be completed online via Framework or through local counseling organizations like the Minnesota Homeownership Center.
Frequently Asked Questions
Everything you need to know about buying in Minnesota with down payment assistance.
Ready to See How Much Assistance You Qualify For?
Our team takes the time to walk you through every option so you can buy your Minnesota home with confidence. No hype, no sales pressure.
Jay Dacey Mortgage Team, Inc. • NMLS #1812066 • Little Canada, Minnesota
What Our Clients Say
Real feedback from Minnesota, Wisconsin, North Dakota, and Florida homebuyers and refinancers.
"Amazingly Helpful"
I have yet to actually buy a house myself, mostly due to my own questions on what I want, but Jay came highly recommended from a trusted co-worker. He has helped me through multiple choices, questions, potential properties, and helped my sister with her mortgage too. I would highly recommend Jay and his team!
"Seamless Home Buying Experience"
Jay and Madeline were incredible to work with from start to finish. As first-time homebuyers, we had endless questions and they walked us through every option patiently. They found us a rate we couldn't get anywhere else and closed right on schedule!
"Engaged and Responsive!"
THANK YOU to Molly and the Jay Dacey Team! During a refinance of my mortgage loan for lowering my interest rate, lowering my mortgage payment, and squaring away my escrow account! Engaged and responsive! Handled a difficult purchase previously and executed flawlessly.
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