2024 Minnesota first time home buyer programs

Minnesota has been nationally recognized for its support of first time home buyers and home ownership.  The MN programs below are available for calendar year 2021 and will likley be extended into calendar year 2022!

Don't know where to begin?  We can help! Click here to find out what programs you might qualify for.

Minnesota Housing - Start Up

This first-time homebuyer program is meant to promote affordable interest rates and help homeowners better tackle their down payments and closing costs. Qualified first-time homebuyers must have a credit score of at least 640, they must meet certain income limits and must be able to obtain a mortgage from a lender. Borrowers must also attend a homebuyer education course. Down payment and closing cost loans are available up to $15,000! 

Summary:

  • Must be a first-time homebuyer.
  • Must have a credit score of at least 640.
  • Must meet income limits.

Apply Now to find out what programs I qualify for

Minnesota Housing - First-Generation Homebuyer Loan Program

Coming Soon - Anticipated Spring 2024. This program will offer a downpayment and closing cost loan designed specifically for first-generation homebuyers. Wondering if you fall into this category? You could be considered a first-generation homebuyer if neither you nor at least one of your parents or legal guardians has ever owned a home, or if they owned a home but lost it due to foreclosure. If you're unsure about your parent or legal guardian's homeownership history, you may still qualify for the program.

First Generation Homebuyers Community Down Payment Assistance Fund

Coming Soon - Anticipated Spring 2024.  In May 2023, Minnesota introduced the First-Generation Homebuyers Community Down Payment Assistance Fund—a newly established initiative. This fund extends forgivable assistance, offering up to ten percent of the home's purchase price (capped at $32,000) to eligible first-generation homebuyers throughout the state. The financial support takes the form of a zero-interest loan, forgiven over five years, contingent on the buyer maintaining the home as their primary residence.

Minnesota Housing - Step Up

This is a loan can be used for home purchase or to help homeowners refinance. The loan is meant to promote affordable interest rates in the state of Minnesota. The monthly payment portion of this Minnesota Housing program is available to help buyers afford closing costs and the down payment of a home purchase. The loan allows borrowers to reduce or eliminate mortgage insurance costs. Qualified borrowers need to have a credit score of at least 640, they must meet program income limits and in some cases, borrowers must attend homebuyer education courses.

Summary:

  • Loan can be used for home purchase or refinancing.
  • Must have a credit score of at least 640.
  • Must meet income limits.

Minnesota Housing - Deferred Payment Loan

This loan is meant for first-time homebuyers to help ease the cost of home ownership. There are two loan options, a deferred payment loan and a plus loan. The deferred payment loan has loans up to $8,000. The maximum for the plus loan is higher, up to $10,000 for those borrowers who fit target criteria. Minimum credit score for qualified borrowers is 640. The borrowers must also attend a homebuyer education course. The loan term is equal to the first mortgage and has 0% interest - the loan is repaid when the property is sold, no longer the homestead of the homeowners or the loan is refinanced.

Summary:

  • Must be first-time homebuyers.
  • Two loan options — can borrow from $8,000 to $10,000.
  • Minimum credit score of 640.

Minnesota Housing - Monthly Payment Loan

This program is designed to help Minnesota homebuyers afford the costs of purchasing a home. Minnesota Housing has a monthly payment loans up to $15,000, to be put towards closing costs and the down payment. Borrowers need to get a Minnesota Housing first mortgage loan as well, which is either a Start Up (first-time homebuyers), Step Up (refinancing), or MCC (mortgage credit certificate). The ten-year loan term comes with monthly payments with an interest rate equal to first mortgage rate. Qualified borrowers need a minimum 640 credit score and must meet program income limits. Borrowers also need to attend a homebuyer education course.

Summary:

  • Loan towards closing costs and home down payment.
  • Ten-year loan term with monthly payments.
  • Minimum 640 credit score.
  • Qualified borrowers must attend homebuyer education course.

Minnesota Housing - Mortgage Credit Certificate

This program was designed to help Minnesota homeowners better afford their mortgages. This Mortgage Credit Certificate allows homeowners to claim 35% of their mortgage interest paid every year as a federal income tax credit — this can provide households with up to $2,000 in tax savings. This certificate can used in conjunction with a Minnesota Housing mortgage, as well as the Monthly Payment Loan which helps with the home down payment and closing costs. This program is geared towards first-time homebuyers (not owned a home in at least three years and not displaced by divorce). The certificate has many qualifications like: borrowers must qualify for a mortgage on a house, meet the income limits of the program, plan to have the property as their primary residence and hold a federal income tax liability.

Summary:

  • Must be first-time homebuyers.
  • Must qualify for a home mortgage.
  • Must meet income limits.
  • Up to $2,000 a year in tax savings.

Buying your first home can be overwhelming. Let us help!  We are committed to finding you any grant monies or assistance programs available to you in MN.  Our buyer agent services are FREE!  Please contact us for more information.  We have assisted hundreds of Minnesota first time home buyers and look forward to the opportunity to assist you!

Customer Reviews

Five Star Reviews for the Barker Hedges Group

"In over 100 reviews, The RE/MAX Results Barker Hedges Group scored 5 Stars out of 5 for performance / client recommendation and 4.8 out of 5 stars for overall satisfaction."

- RealSatisfied.com Reviews

RE/MAX Results - Barker Hedges Group Reviews