The Start Up program is for first-time homebuyers, which is someone who "has not had an ownership interest in a principal residence in the last three years." If you’ve never owned a home, or it's been more than three years since you've been a homeowner, you may be considered a first-time homebuyer.

Start Up program guidelines and options may include:

• Income limits up to $152,200 based on county.
• House price purchase limits up to $659,550 in the 11-county Metro area and $604,400 for all other counties
• Downpayment and Closing Cost Loan options – with amounts up to $18,000!
• Minimum credit score
• Owner-occupancy requirement
• Homebuyer education:  At least ONE borrower must complete an approved homebuyer education course before closing on the home. 

If you are a first-time homebuyer but exceed the income or purchase price limits for Start Up, you may be eligible under the Step Up program (Information on Step Up is under “Repeat Homebuyers” below). 

If you’re not a first-time homebuyer – or you’re a first-time homebuyer who exceeds the income or purchase limits for Start Up – the Step Up program might be a great option.

Step Up program guidelines and options may include:

• Income limits up to $197,900 based on county
• House price limits up to $659,550 in the 11-county Metro area and $637,950 for all other counties
• Downpayment and Closing Cost Loan option – up to $14,000 available!
• Minimum credit score
• Owner-occupancy requirement
• Homebuyer education:  If ALL borrowers are first time buyers, at least ONE borrower must complete an approved homebuyer education course before closing on the home.

Step Up can also be used to refinance your current mortgage and offers borrowers the option to use our Monthly Payment Loan to cover closing costs. You do not need to be an existing Minnesota Housing borrower to use this program, but if you are, and have one of our second mortgages, you may be able to subordinate it when you refinance with Step Up.

Step Up program guidelines and options may include:

• Income limits up to $197,900 based on county
• Loan amount limits up to $659,550 in the 11-county Metro area and $637,950 for all other counties
• Downpayment and Closing Cost Loan options – up to $14,000 available!
• Minimum credit score requirement
• Owner-occupancy required

When you qualify for a loan and are eligible for the Minnesota Housing Start Up or Step Up programs, you may also have the option to access one of our downpayment and closing cost loan programs.

These loans, with amounts up to $18,000, are not grants. Each loan program has eligibility requirements and can only be used with a Minnesota Housing first mortgage.

Downpayment and closing cost loan program options main features:

Terms	Monthly Payment Loan	Deferred Payment Loan (DPL) / Deferred Payment Loan Plus (DPL+)
Availability	Available with Start Up or Step Up	Available with Start Up only
Loan Amount	Up to $14,000	DPL Up to $14,000 DPL+ Up to $18,000
Interest Rate and Repayment Terms	10 year repayment term Equal to your first mortgage rate	No interest, no monthly payments. Balloon payment due in full at the end of the mortgage term.**
Income Limits	Same as Minnesota Housing first mortgage loan program	Contact a participating lender

** Interest-free deferred balloon loan must be fully repaid in a lump sum at the end of the mortgage term, or if the borrower moves, the property is sold or refinanced (unless refinancing with our Step Up program) or the first mortgage is paid off before the term of the loan.

Check out our Get Ready for Homeownership page to learn more about approved homebuyer education classes, free homeownership advisor services, and personalized financial counseling.

If you are getting a Minnesota Housing loan and all borrowers are first-time homebuyers, at least one borrower must complete an approved homebuyer education course. The class benefits you more if you take it early in your homebuying process because buying a home can be confusing. So why wait?

1. Get started by completing an approved homebuyer education course or speak to a homeownership advisor.
   • A homeownership advisor can help you determine if you are ready to buy without impacting your credit.
   • Click here for info on approved homebuyer education courses and free homeownership advisor services.
2. Connect with a participating Minnesota Housing lender of your choice through our Find a Lender tool.
   • Talk to a participating lender to learn about Minnesota Housing Programs.
   • Get answers to your questions, including about interest rates, downpayment requirements and costs associated with mortgage financing.
   • Let them know you are interested in working with them to see which Minnesota Housing program may be right for you.
   • Get pre-approved.