Homeownership Programs

Minnesota Housing offers a variety of loan programs for first-time and repeat homebuyers and refinancing to help make owning a home more affordable.

We work with local participating lenders who can answer questions about program eligibility and help you learn about the features of our programs, including downpayment and closing cost loan options up to $18,000.

Buy a Home as a First-Time Homebuyer

First-Time Homebuyers

The Start Up program is for first-time homebuyers, defined as those who "have 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.

To learn more, meet with a participating lender to discuss Start Up program guidelines and options, including:

Income limits
Downpayment and Closing Cost Loan options – up to $18,000 available!
Minimum credit score
Owner-occupancy requirement
Purchase price limits
Completion of homebuyer education

If you are a first-time homebuyer but exceed the income or purchase price limits for Start Up, you may be able to qualify under the Step Up program. Get started on your path to homeownership! Contact a participating lender with questions about your eligibility and learn more about which Minnesota Housing program may be right for you.

Repeat Homebuyer

Repeat Homebuyers

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

To learn more, meet with a participating lender to discuss Step Up program guidelines and options, including:

Income limits
Downpayment and Closing Cost Loan options – up to $18,000 available!
Minimum credit score
Owner-occupancy requirement
Purchase price limits
Completion of homebuyer education (if all borrowers are first-time homebuyers)

Get started on your path to homeownership! Contact a participating lender with questions about your eligibility and learn more about the Minnesota Housing Step Up program.

Refinance

Refinancing

Step Up also offers the option to refinance your current mortgage with access to 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.

To learn more, meet with a participating lender to discuss Step Up program guidelines and options, including:

Income limits
Downpayment and Closing Cost Loan options – up to $18,000 available!
Minimum credit score requirement
Owner-occupancy required
Loan amount limits

Ready to refinance and take the next step? Contact a participating lender with questions about your eligibility and learn more about the Minnesota Housing Step up program.

Downpayment and Closing Cost Loans

When you qualify for a loan and are eligible for the Minnesota Housing Start Up or Step Up programs, you also have the option to access one of downpayment and closing cost loans. These loans, which can range in amounts from $16,500-$18,000, are not grants, must all be repaid in full, have eligibility requirements of their own, and can only be used with a Minnesota Housing first mortgage.

This chart describes the main features of our three downpayment and closing cost loan options.

Terms	Monthly Payment Loan	Deferred Payment Loan	Deferred Payment Loan Plus
Availability	Start Up or Step Up	Start Up only	Start Up only
Loan Amount	Up to $18,000	Up to $16,500	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.*	No interest, no monthly payments. Balloon payment due in full at the end of the mortgage term.*
Income Limits	Income limits	Income limits	Income limits

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

Contact a participating lender who can assist you with a Start Up or Step Up loan to discuss additional guidelines and requirements for Minnesota Housing downpayment and closing cost loans, and learn more about which second mortgage option is best for you!

Next Steps to Get a Minnesota Housing Loan

Get a Minnesota Housing Loan

Find a participating Minnesota Housing lender of your choice through our Lender Search tool, and let them know you are interested in a Minnesota Housing loan.
Apply for a Minnesota Housing loan program just like you would for any other loan. Our programs don’t require an additional application, and it takes the same amount of time from pre-qualification to closing.
If all borrowers in your household are first-time homebuyers, at least one of you must complete an approved homebuyer education course before closing on your home.

Mortgage Credit Certificate Program for First-Time Homebuyers

Mortgage Credit Certificate Program

As of December 31, 2017, the Mortgage Credit Certificate (MCC) Program is no longer available.

If you already have a Minnesota Housing MCC:

Want to refinance? Check out our Frequently Asked Questions for Current MCC holders.
Approved Lenders for MCC Refinances: Twin Cities MCC Approved Lenders or Greater Minnesota MCC Approved Lenders
Have other questions or lost your MCC? Contact Sondra Breneman.

In connection with Single Family Division loan programs, Minnesota Housing does not make or arrange loans. It is neither an originator nor creditor and is not affiliated with any Lender. The terms of any mortgage finance transactions conducted in connection with these programs, including important information such as loan fees, the annual percentage rate (APR), repayment conditions, disclosures, and any other materials which are required to be provided to the consumer are the responsibility of the Lender.

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