How much down payment do I need to buy a house in Minnesota?

You can buy a home in Minnesota with as little as 0% down (VA/USDA), 3% down ($9,750 conventional), or 3.5% down ($11,375 FHA) on the median-priced home of $325,000.

What income do I need to buy a home in Minnesota?

To afford the median-priced home in Minnesota ($325,000) with a 30-year mortgage at 6.15%, you typically need a household income of approximately $80,154 per year (using the 28% rule). The median income in Minnesota is $77,706.

What is the FHA loan limit in Minnesota for 2026?

The FHA loan limit in Minnesota for 2026 is $472,030. This means first-time buyers using FHA loans can finance up to this amount with just 3.5% down payment.

First-Time Home Buyer Minnesota 2026

Q: What first-time home buyer programs are available in Minnesota?

Minnesota offers 2 major first-time buyer programs including Minnesota Housing Start Up, MN Monthly Payment Loan. These programs provide grants, forgivable loans, and below-market rates to help with down payment and closing costs.

Your complete guide to buying your first home in Minnesota. 2+ down payment assistance programs, FHA loans from 5.95%, and step-by-step guidance.

Median Price

$325,000

Min Down (FHA)

$11,375

DPA Programs

Best Rate

5.95%

Check My Minnesota Eligibility

What First-Time Buyer Programs Are Available in Minnesota?

Minnesota offers 2 major first-time home buyer assistance programs. These include Minnesota Housing Start Up, MN Monthly Payment Loan. Programs provide up to $18,000 in down payment assistance through grants, forgivable loans, and below-market interest rates.

How Much Do I Need to Buy in Minnesota?

You can buy a home in Minnesota with as little as $0 down. VA and USDA loans require zero down payment. FHA loans need just 3.5% ($$11,375), and conventional loans start at 3% ($$9,750) on the median price of $325,000.

Loan Type	Down Payment	$ Amount	Monthly P&I	Min Credit
VA Loan	0%	$0	$1,928	620
USDA Loan	0%	$0	$1,980	640
Conventional 3%	3%	$9,750	$1,921	620
FHA Loan	3.5%	$11,375	$1,870	580
Conventional 20%	20%	$65,000	$1,584	620

Minnesota Down Payment Assistance Programs

Minnesota Housing Start Up

Below-market rates with DPA for first-time buyers

Up to $18,000deferred

MN Monthly Payment Loan

Second mortgage with monthly payments for DPA

Up to $17,000low interest

5 Steps to Buy Your First Home in Minnesota

To buy your first home in Minnesota, start by checking your credit score, getting pre-approved, and researching DPA programs. The entire process typically takes 30-60 days from pre-approval to closing. Here's your step-by-step roadmap.

Check Your Credit & Finances

Review your credit score (aim for 620+), calculate your debt-to-income ratio, and save for closing costs. In Minnesota, you may need as little as $11,375 for an FHA down payment.

Get Pre-Approved

Compare rates from at least 3 lenders. Current Minnesota rates: 6.15% (30-year), 5.95% (FHA). Pre-approval shows sellers you're serious and locks your rate.

Apply for Minnesota DPA Programs

Minnesota has 2+ DPA programs. The Minnesota Housing Start Up offers up to $18,000. Apply early—funding can be limited.

House Hunt & Make an Offer

Popular cities in Minnesota: Minneapolis, St. Paul, Rochester, Duluth, Bloomington. Median price is $325,000 (+5.2% YoY). Work with a local real estate agent who knows the market.

Close on Your New Home

Closing costs in Minnesota typically run 2-5% of the purchase price ($9,750-$16,250). Some DPA programs also cover closing costs.

Start Your Minnesota Home Buying Journey

Get pre-approved in minutes and see what you qualify for.

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Minnesota First-Time Buyer FAQ

What first-time home buyer programs are available in Minnesota?

Minnesota offers 2 major programs: Minnesota Housing Start Up, MN Monthly Payment Loan. These provide grants, forgivable loans, and below-market rates for down payment and closing cost assistance.