Last updated: September 1, 2026 · Verified against Minnesota Housing, HUD, FHA official data
Minnesota First-Time Home Buyer Programs 2026: Minnesota Housing Grants & DPA Guide
Minnesota Housing offers up to $25,000 in down payment assistance at 0% interest — fully forgiven after just 5 years. Combined with an FHA loan, you can buy a home in Minnesota with virtually $0 out of pocket. Here's everything you need to qualify and apply.
Max DPA
$25,000
Interest on DPA
0%
Min Credit
640
Forgiveness
5 Years
⚠️ ATTENTION: NOT ALL LENDERS ARE APPROVED FOR MINNESOTA HOUSING PROGRAMS
Don't Waste Time with the Wrong Lender — Most Are Not Minnesota Housing-Approved
The Minnesota Housing program requires you to work with a Minnesota Housing-approved participating lender. Using a lender that isn't certified means your $25,000 DPA grant disappears — even if you qualify. Don't waste weeks in underwriting only to find out at closing. Match with a verified MN-approved lender right now:
🏆 Top 5 Minnesota Housing-Approved Lenders (2026)
You must use a Minnesota Housing-approved lender to get the $25,000 DPA grant. Here are the top 5 ranked by rate, fees, and Minnesota Housing expertise:
| # | Lender | Rate | Fees | Min Credit | Close | Best For | Apply |
|---|---|---|---|---|---|---|---|
| #1 | Rocket Mortgage 🏆 BEST OVERALL | 6.50% | 0.5% | 640 | 21-30d | Best overall + fastest close | Apply → |
| #2 | U.S. Bank 🏦 MN LOCAL | 6.45% | 0.5% | 640 | 30-45d | Best MN-local lender (Minneapolis HQ) | Apply → |
| #3 | Wells Fargo ⭐ MN FAVORITE | 6.50% | 0.5% | 640 | 30-45d | Best for existing WF customers | Apply → |
| #4 | Guild Mortgage 📋 DPA EXPERT | 6.55% | 0.5% | 640 | 30-40d | Best for Minnesota Housing DPA | Apply → |
| #5 | Fairway Independent ⭐ TOP RATED | 6.50% | 0.5% | 640 | 25-35d | Highest customer rating 4.7/5 | Apply → |
Rates shown are estimates for Minnesota Housing first mortgage + DPA. Your actual rate depends on credit score, DTI, and loan type. Compare personalized rates →
Minnesota Housing Down Payment Assistance: How the $25K Grant Works
Minnesota Housing is one of the most generous down payment assistance programs in the Midwest. Here's how it works:
- ✓Up to $25,000 (5% of purchase price)
- ✓0% interest — no interest ever
- ✓No monthly payments on DPA
- ✓Forgiven at 20%/year starting Year 1
- ✓Fully forgiven after 5 years — stay 5 years, it's free
- ✓Use for down payment and/or closing costs
- ★Below-market 30-year fixed rate
- ★Typically 0.25-0.50% below market rate
- ★Available with FHA, VA, USDA, Conventional
- ★No prepayment penalties
- ★Homebuyer education required (free online)
Real Example: Buying a $350,000 Home in Minnesota with Minnesota Housing
With Minnesota Housing + FHA
- Home price: $350,000
- FHA down payment (3.5%): $12,250
- Minnesota Housing DPA: -$25,000
- Your out-of-pocket: $0
- Plus $12,750 toward closing costs!
Monthly Payment Estimate
- First mortgage (MN Housing FHA, 6.25%): $1,918/mo
- FHA MIP: $175/mo
- Property taxes (est.): $292/mo
- Homeowners insurance: $150/mo
- DPA payment: $0/mo
- Total: ~$2,535/month
Minnesota Housing Income Limits & Purchase Price Limits 2026 by County
| County | 1-2 Person | 3+ Person | Max Purchase Price |
|---|---|---|---|
| Hennepin County (Minneapolis) | $128,000 | $147,000 | $571,000 |
| Ramsey County (St. Paul) | $128,000 | $147,000 | $541,287 |
| Dakota County | $128,000 | $147,000 | $571,000 |
| Anoka County | $115,000 | $132,000 | $475,000 |
| Washington County | $128,000 | $147,000 | $571,000 |
| Stearns County (St. Cloud) | $115,000 | $132,000 | $425,000 |
| Olmsted County (Rochester) | $115,000 | $132,000 | $450,000 |
| St. Louis County (Duluth) | $108,000 | $124,000 | $400,000 |
Income limits based on Minnesota Housing 2026 guidelines. Check approved lenders for your exact county limits.
Compare Minnesota Housing-Approved Lenders in 60 Seconds
Get quotes from 5+ MN-approved lenders. Soft pull, no credit impact, no obligation.
Compare MN Lenders →Step-by-Step: How to Apply for Minnesota Housing DPA
Complete Homebuyer Education
Take a HUD-approved 8-hour homebuyer education course. Available online through Minnesota Housing's approved providers (~$75-99). You receive a certificate valid for 1 year.
Get Pre-Approved with a Minnesota Housing-Approved Lender
Minnesota Housing must be processed through an approved lender. There are 100+ approved lenders statewide. They will determine your eligibility and the maximum DPA you qualify for.
→ Find Minnesota Housing-approved lenders near you →Choose Your Loan Type
Work with your lender to select FHA (3.5% down, 640 score), VA (0% down, veterans), USDA (0% down, rural areas), or Conventional (3-5% down, 640+ score). FHA + Minnesota Housing DPA is the most common combination — $25K covers the full 3.5% down + closing costs.
Find Your Home & Make an Offer
Shop within the purchase price limits for your county. The home must be your primary residence. Single-family homes, condos, and townhomes qualify. No investment properties.
Close on Your New Home
Minnesota Housing adds about 1 week to the typical closing timeline. Budget 45-60 days total. Your lender handles all Minnesota Housing paperwork. The DPA is recorded as a second lien at closing — forgiven 20%/year until fully forgiven in Year 5.
Frequently Asked Questions
What is the Minnesota Housing first-time home buyer program?
What are the Minnesota Housing income limits for 2026?
How much down payment assistance does Minnesota Housing provide?
What credit score do I need for Minnesota Housing?
Can I use Minnesota Housing with FHA, VA, or USDA loans?
Related Guides
Get Pre-Approved for Minnesota Housing DPA
Check your eligibility and get matched with a Minnesota Housing-approved lender near you.
Check Eligibility Free →Free · No SSN required · See if you qualify for $25K