First-Time Home Buyer Programs in Minnesota

Minnesota Housing Programs:

Start Up Program:

Eligibility: First-time homebuyers (no homeownership in 3 years) statewide.
Offerings: 30‑year fixed-rate mortgage (FHA, VA, USDA, or conventional); pairable with assistance loans.
Requirements:

• Income ≤ $121,300 (1‑2 persons) or $139,495 (3+ persons). Income & program details.
• Credit score ≥ 640.
• DTI ≤ 45% (50% w/ compensating factors).
• Homebuyer education required if using assistance.
• Purchase price limits: $390,000 (Twin Cities) or $320,000 (other areas).

Monthly Payment Loan (MPL):

Benefits: Up to $14,000 (reduced from $18K) at 0%, amortizing over 10 years. Loan comparison.

• Must pair with Start Up or Step Up.
• Step Up income limits: $130,400 (1–2p), $150,000 (3+p) in metro areas; lower in other counties.

Deferred Payment Loan (DPL / DPL+):

Description: DPL up to $14,000 at 0%, repayable upon sale/refinance; DPL+ up to $18,000 for first-gen, large, disabled, or single-parent households. DPL details.

• Minimum housing ratio 28% now required.
• Includes DPL+ targeting criteria per revised manual.

eSignature Update:

Effective March 3, 2025, electronic signatures are accepted; borrowers cannot be required to sign electronically. Policy notice.

Local Programs:

Minneapolis

City Living Assistance: Up to $25,000 deferred loan (0%), forgiven after 15 years; income ≤ 80% AMI (~$82,950 for family of four). Program info.

St. Paul

Homebuyer Assistance: Up to $40,000 deferred loan; income ≤ 80% AMI; targeted zones. Details.

Duluth

First-Time Homebuyer Program: Up to $10,000 forgivable after 5 years; income ≤ 80% AMI. More info.

Additional Information:

• Mortgage Credit Certificate (MCC): 35% tax credit (max $2,000/year); available with Minnesota Housing loans.
• Loan Options: FHA (3.5% down, credit ≥ 580), USDA/VA (0% down).