Downpayment Assistance

How to Find a Lender that Offers Down Payment Assistance

First-time homebuyers often approach us to ask whether they can use two separate lenders to finance their deal. Generally, this is so that they can make use of a down payment assistance program the lender they were pre-qualified with doesn’t offer. Unfortunately, this isn’t possible. Not every lender is approved to offer these programs, which is why it’s so important to research any professional you’re considering hiring before you begin working with them. Our team has a list of local vendors who we’d be happy to recommend to you, so please reach out if you have any questions.


How Much Do You Need to Save for a Down Payment?

People often ask us how much they should really save to buy a home. This will depend on a few factors. To give you a short answer, there are many favorable loan programs here in Minnesota that will allow you to secure a mortgage for as little as $1,000. However, the financing option you choose will depend on your circumstances. Not all down payments will look the same. We would be happy to help answer any additional questions you have on this subject, but, for now, you can hear today’s full message by watching this short video.


Down Payment Assistance Frequently Asked Questions

Down Payment For a Minnesota HomeMost home buyers need to borrow money in order to purchase a home, which means they’ll also need to come up with at least some money up front for a down payment. And while the concept of a down payment might seem fairly straight forward, questions and answers regarding a down payment are much more wide-ranging than you may thing. Let’s take a closer look at just some of the down payment FAQs we’ve seen over the years below….

Q: Why is a down payment required?

A: Above all, a down payment can be a strong indicator that borrowers have the financial discipline to purchase a home and keep up with monthly payments. But along with that, more money down also helps minimize risk to lenders as well. Simply put, the larger the down payment, the less likely borrowers will default on an unpaid loan balance and lose whatever money was put down.

Q: Can a seller contribute to a down payment?

A: No, however sellers can contribute to other home buying fees like closing costs and inspection fees, which enables buyers to put more money down initially.

Q: Can I use funds from retirement accounts to make a down payment?

A: Although withdrawing funds from a 401K or other retirement savings account is possible, it isn’t recommended. In most cases you’ll be hit with heavy taxes or early withdraw penalties, which could end up costing you more in the long run.

Q: Why should I make a larger...

What Is a Standard Down Payment?

Many first-time homebuyers don’t understand what constitutes a standard down payment. The short answer is that there isn’t one. There are many good down payment assistance programs in Minnesota that allow first-time homebuyers get into a home with as little as $1,000 down, but ultimately the best down payment solution is whatever works best for you. We’d be happy to give you information to figure out what the best scenario would be for you. To hear more, watch my latest video.

Additional Down Payment Resources


Down Payment & Closing Cost Loans: A Quick Overview

Minnesota Down Payment LoansSaving up for a down payment and the closing costs associated with buying a home may seem like a challenging, or even impossible, task for some buyers. But with various programs and government-backed financing options available to buyers just like you, buying a home might just be an obtainable goal, even without all that money up front. 

If you’re someone who may not quality for zero down financing, exploring Minnesota’s down payment and closing costs assistance programs should be your next course of action. 

In Minnesota specifically, The Minnesota Housing Finance Agency offers first-time home buyer loans of up to $15,000, which can be used for a down payment, closing costs, or a combination of the two. 

To qualify, borrowers must not have owned a home within the last three years, and must also have a credit score 640 while meeting the required income limits. In addition, this Monthly Payment Loan will also have an interest rate equal to your first mortgage rate, and the loan term can stretch out for as long as 10 years. 

For additional information about down payment/closing cost loans...

What Is the Average Down Payment?

Today we will be addressing a question we hear all the time: What does the average down payment on a home look like? The answer is not as cut-and-dry as some might think. On a national level, the average buyer tends to put down about 20% of the total purchase price. But first-time homebuyers often submit a far lower amount. To learn more, watch this short video.

Additional Down Payment Resources


How Much Money Will You Need for a Down Payment on a House?

Many people, especially first-time homebuyers, often ask me how much money they need to save for a down payment. Well, according to studies conducted by the National Association of Realtors, the average down payment is around 6%. However, there are certain programs that allow for buyers to put even less money down. Some programs even allow buyers to forgo a down payment altogether. To learn more, watch this short video.

Additional Down Payment Resources

Hennepin County Funds!

Hennepin County’s first-time homebuyer program operates on a first-come, first-serve basis. For additional information on the first-time homebuyers programs, downpayment and closing costs assistance and homebuyer training, contact us below.

Hennepin County Neighborhood Stabilization Program

Buying in Hennepin County*? You Could get up to $30,000!

Hennepin County has two prgrams (NSP2 and FPP) where you could qualify for up to $30,000 in assistance. Because this is a government directed program, there are quite a few guidelines that must be met. A few are listed below, but many are a little confusing, so it’s better to assess your personal situation for eligibility.


  • Purchase price limits of $200,000 or $276,683 depending on income
  • Must work with an approved Hennepin County NSP lender
  • Property must be vacant and foreclosed
  • Homestretch class with NSP approval is required, though program is NOT specific to first time buyer
  • Income limits vary depending on assistance amount – 1 person household $45,100 or $70,550
  • 203K eligible
  • Need 50% of "required" down payment

Money is limited and is first-come, first-served. Please let us know if you’d like to learn more about your eligibility for this program!