Down payment assistance loans in MN


The rules and guidelines for Minnesota Housing Finance Agency (MHFA) first time home buyer down payment assistance programs in MN are a bit overwhelming for most potential new home owners.


We suggest you don't try to figure it out yourself...  Rather, simply call us at (651) 552-3681, or fill out a full online application. Our licensed professional Loan Officers will review the application, zero in on the best loan for you, then contact you to discuss your options, all with NO COST and NO obligations whatsoever.


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You must meet the following household income eligibility guidelines. This is all income for those living in the home, not just whoever is applying for the loan.

  AREA 1-2 people 3+ people
Metro $90,400 $103,900
Rochester Area $88,600 $101,800
Balance of State $80,400 $92,500




The home must cost less than the following:


Home Costs / Loan Limits
11 County Metro Area Balance of State
$306,000 $253,800


STEP THREE - Determine which type of down payment assistance you can obtain.


There are two down payment assistance options.

  • A deferred loan, where there are no payments due, and no interest due today. The loan must be paid back when you sell or no longer occupy the home. This option requires additional income limits (see below)
  • A monthly payment loan. You must begin paying this loan back immediately, amortized over a 10-year period. This option is available to everyone who qualifies for the MHFA program.


Your income must be at or below these income limits TO QUALIFY for the deferred payment down payment assistance option.

Household Size 11-County Twin Cities Metro Area* Rochester MSA** Balance of State

1-2 People




3 People




4 People




5 People




6 People




7+ People




Subject to change. Call (651) 552-3681 for current information


STEP FOUR - Down Payment Loan Options


View the three assistance qualification options below:


Key Features

Monthly Payment Loan

Deferred Payment Loan

Loan Amount

Up to the greater of $12,000 Up to the greater of $8000

Loan Term

10-year term Equal to first mortgage term
Borrower Contribution Borrower must contribute $1,000 or 1% of the purchase price, whichever is less Borrower must contribute $1,000 or 1% of the purchase price, whichever is less


Amortizing loan.  Requires a monthly payment repaid in equal payments beginning right away Deferred payment.  Does not require monthly payments, but must be paid in full upon satisfaction of first mortgage

Interest Rate

Equal to first mortgage rate Interest-free

Income Limits

Use Start Start Up/Mortgage Credit Certificate/Step Up/Monthly Payment Loan Income Limits Deferred Payment Loan income limits (see above)

Homebuyer Education

Required Required

First-time Homebuyer Requirement

No Yes

Available with which Minnesota Housing first mortgage program(s)?

  • Start Up
  • MCC (with First Mortgage)
  • Step Up
Start Up

STEP FIVE - APPLY for your  Down Payment Assistance Loan in MN


MHFA Mortgage ApplicationAppling is super easy. 

Simply call our office at (651) 552-3681, or start by filling out the easy online mortgage application. We will review your application, determine what, if anything you qualify for, write you a pre-approval letter, and get you connected with a great Real Estate Agent to start searching for your dream home!


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